Hedging Strategy guarantee to make money weeks after weeks

[Trevman]

what if it suddenly moves against you

[crucian]

you get out
Don't h

[crucian]

Don't hold on to a looser

[Trevman]

if its sudden you wont have much choice, but also isnt the spread greater value than the interest youd get back?

[GB]

Originally Posted by Trevman

if its sudden you wont have much choice, but also isnt the spread greater value than the interest youd get back?

Yes the spread is bigger than the interest, but you pay spread only once. That is why you must keep your position open as long as you can, because you earn that $32 every day. If you earn the interest 4 days in a row minus the spraed, then you have made a profit.

Correct me if i am wrong.

[Trevman]

correct, providing your position is hedged as originally suggested but i'm reffering to this

Originally Posted by crucian

buy the following pairs: usd/jpy, usd/chf, gbp/jpy, chf/jpy at 16:55 (or around that time), wait until 17:01 and first get rid of positions that are loosing money, positions that are making money can be kept longer. You will get interested on buy for all 4 of them, and there will be days when you will loose on all 4 positions, but there is definitelly more days when you will make money on all 4 position. Since I have 2 pip spread for all pairs, it really doesn't affect me as if i had 8 pips on one, or 3 pips spread on the other. Two pips in my direction and I am already at break even

also has anyone actaully tried the original stratergy and how are the brokers taking it?

[apfx]

Originally Posted by Trevman

correct, providing your position is hedged as originally suggested but i'm reffering to this



also has anyone actaully tried the original stratergy and how are the brokers taking it?

Brokers are not there to give money away. Those who offer interest free acc. (Islamic accounts) will charge a daily commission to offset the rollover cost. and the others probably might simply limit your exposure or close your short positions on high yielding curr. to make sure they do not loose anything. + the questionable safety of funds.
In total it turns out to be a high risk strategy.

[GB]

Originally Posted by apfx

Brokers are not there to give money away. Those who offer interest free acc. (Islamic accounts) will charge a daily commission to offset the rollover cost. and the others probably might simply limit your exposure or close your short positions on high yielding curr. to make sure they do not loose anything. + the questionable safety of funds.
In total it turns out to be a high risk strategy.

I like the original strategy as discussed by hedg4x. Problem is: How long is it going to take the broker to see that you are only trading the GBP/JPY? How long before the broker picks up your trading pattern? ( Doing the same kind of trade everytime you enter the market).How long before the broker notice that you are topping the account up? ( You have to do it every now and then , because you cannot win all your deals at one broker). Here is something more negative towards this aspect af trading: All brokers gaurantee their clients privacy, but what if all brokers share a common database of their clients to see if clients have accounts at more than one broker. If this is true they can easily share information and therefore track your moves down. The reason i say this is on Wikipedia i saw a forex article on "arbitrage" and how easily brokers identify those who are doing it. It is said that brokers know how to "deal" with those traders.
I am not negative. I think one should just get all the facts before jumping into it.