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[mmont]

For the interest account:
Sell 4 lots of eurusd
buy 1 lot of gbpusd,
and collect around $32 per day.



for the interest free account:
sell 4 lots of eurusd
buy 1 lot of gbpusd,
buy 4 lots of eurusd,
sell 1 lot gbpusd
and we don't pay nor receive any interest.


on the interest free broker, once the sell 4 lots of eurusd and buy 1 lot of gbpusd is in profit
zone, we close out the trade. Do this daily on the interest free
broker account to make them happy. They make money off the spreads.
This is why we trade daily. We make more money and they make more
money. Everyone is happy :-)

I think your missing something here on a couple of points.

1. Most important: Your interest bearing acct. would be a naked position.
Since the object is to make money on the interest w/o risk this is not what you want.

2. Least important:The broker you want to keep happy is the one paying interest, not visa versa.

3. Important:Closing and opening one side of your hedge position will cost you the spread each time, al-be-it delayed, until final close out.

Am I missing something? It would'nt be the first time.

[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

[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.

[apfx]

Originally Posted by GB

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.

The only problem with this strategy is being so obvious
the "interest free" (if it existed a safe one) broker will be constantly loosing money. He can easily monitor your positions and see that you are short high yeilding currencies.
What happens if the "interest free broker" decides to close your short position (system failure) when the curr. is going down ?

[abaker]

with f o r e x s e r v i c e s c a n a d a . c o m, had you had many requotes when trying to close profitable trades? is their platform stable or java?

Originally Posted by hitman2000

Can you tell us wich currency pairs are you using ? I was trying this strategy on EURUSD with USDCHF but if I`ll go long on them I will earn interest on EUR & lose on CHF. I am using O&A. Thank you for your reply

[smeden]

Originally Posted by crucian

There is also another way to do this using the same broker.

Find 2 currency pairs that go in opposite direction and on which you will be getting interest (you have to go long on both of them, but one will be making money, and one will be loosing money) That way, your balace won't change but you will get the interest money. I do this all the time and use a canadian broker that has 2 pip spread on all currency pairs: f o r e x s e r v i c e s c a n a d a . c o m

Hi
I have never heard about this broker. How long have you been using them?
Are they any good? Do they provide API?

[crucian]

Hi,

Yes, they use Java (not my preference, but if you don't have other java programs opened on your computer this platform runs perfectly fine....)

There are two types of orders:
auto reject: you will get your fill at the number you want, or you won't get it at all.

auto market: most of the time you will get the fill where you want it, but if market is moving fast, there may be a difference between what you wanted and what you got... (never had more than 3 pips, at least in my trading).

I didn't like the slippage though so I switched to auto reject and didn't have any issues since then.

[Trevman]

has anyone tried this yet?