Swap rates

[SteveHopwood]

The value of positive swap.

Here is a 10.2 inspired au buy; H4 chart. Looks pretty sickly.

1.gif

Yellow vertical line marks roughly the time I took the trade.

Then pull the chart out a bit.

2.gif

Suddenly, I made the daft mistake of buying at the top of an up move in in up trend, but still bought into an up trend.

Now look at the D1. A clear uptrend.

3.gif

Anyone here seriously thinking we are not in an uptrend?

Until we pull out to the W1. How much more rangy do you want to get?

4.gif

Then pull out again to the MN1. Clear uptrend from 2008, and a lot further back if you pull out a bit further, but who cares?

5.gif

Point is, if you are not scalping then do not fight the swap on the big-swap pairs. My audusd buy makes one pip a day in positive swap, so I do not care if the market goes against me. Ask me again in 6 months time when some seismic event has destroyed the Aussie economy and their interest rate is crucifying me, but I will deal with that if it happens.

In the meantime, if the trade ever gets anywhere near the high you can see on the final pic, I shall close the trade with the positive pips and positive swap in my pocket.

Actually, what will happen is that mptm will get me out at +10 'cos I am a wimp and cannot bear the thought that actually the Aussie dollar has to plummet sometime, taking my trade with it. Bugger. mptm will get me out about 5 seconds before au screams to highs undreamed of until they happen. Hey ho.

I will have made quite a lot of positive swap in the meantime. Ok, so Aussie has to drop sometime, but will I consider selling it? Not a hope. Only an idiot etc

[alex_forex]

I love this story Steve

The swap filter in your EAs is useful ! Swap is so big on those pairs that they could eat all profit.

[SteveHopwood]

Tonight was double-swap night. Yummy when on the right side of a high-swap pair.

[mobthehop]

Steve, I think it is triple swap on Wednesday close....

[garyfritz]

But it all works out because there's no swap on the weekend, right? So you still end up getting one unit of swap per calendar day? As long as you're holding your position more than a week or so, the multi-swap days don't really change anything.

[SteveHopwood]

But it all works out because there's no swap on the weekend, right? So you still end up getting one unit of swap per calendar day? As long as you're holding your position more than a week or so, the multi-swap days don't really change anything.

Not a thing. Still nice.