Patience and the joy of positive swap

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SteveHopwood
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Patience and the joy of positive swap

Post by SteveHopwood »

Patience is a bit of a virtue when it comes to trading. I have trades still open from November. They are trying my patience sorely, but look how the (mostly) positive swap is helping - you may need to open the image in a new tab to enlarge so you can read the details:
XAUUSDH4.png
Look at the GBPCHF trades and the difference the swap is making - I would have been weeping had these been sells. :lol:

Here is a copy of the chart. The vertical yellow lines outline the trades and Rene's fabulous DrawOpenTrades indi matches where they began to where they are now (http://www.stevehopwoodforex.com/phpBB3 ... 69#p155669)
GBPCHFH4.png
That long sell trade you can see at the bottom has, "Hedge" as its comment. It would have been a hedge for open buys placed by SPB before the markets kicked us in the groin over the summer. It is a great example of the havoc that negative swap can wreak. The 'headline' profit at closure was +$195 but the swap incurred was -$143. Overall, the profit was +$52. Better than a slap in the face, but not a lot compared to the time it was open.

Compare that with the buys at the top of the chart. XY42 would have placed the early trades. I would have loaded the EA at the time because SS D1, H4 and H1 would all have been >1 and I had not realised back then what a bad idea it is to fight the H4 Peaky. The great thingy through the long decline was the positive and excellent swap; this is now contributing hugely to the overall profitability.

You can see a buy at the bottom of the pack that is not joined to the current price by DrawOpenTrades because it has, "Hedge" as its order comment. I placed it on Nov 5th, so I am guessing it was hedging that sell. The 'headline' profit on the trade is +$19, but the swap is a mahoosive +$91.

Here is another where patience paid off, but the swap caused a lot of damage to the overall profit:
USDJPYH4.png
Headline figure +$263; swap costs -$115.

It is worthwhile considering the effects of swap before pulling the trigger on a trade.

:xm: :rocket:
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