Forex Strategy Turn Curry
Forex Strategy Turn curry is a long term and is designed for traders who want to trade in the direction of positive curry (or other Slovan earn raznetse interest rates or in other words, the swap).
To trade on the forex strategy suitable only Carry-currency pairs, ie currency pairs, which is a big difference at discount rates - for example: AUDJPG, NZDJPG.
Although this forex strategy at the time of world crisis and slightly lost its relevance, but even so I deem it necessary to tell about it on his website. Especially as world financial crisis will not last forever, and hopefully in the near future strategy Turn Curry will be popular again.
Principles trade forex strategy Turn curry:
Remember, to sell only in the direction of Curry , ie in the direction of positive interest. For example, if the Australian dollar (AUD) gives a higher percentage than the Japanese Yen (JPY), the currency pair to trade AUDJPY be only the long side. Similarly, if the British pound (GBP) is of great higher rate than for example the euro, the currency pair EURGBP - should only trade the short side. Ie the main rule is that the forex trader should enter into transactions only in the direction of the currency pair with a higher interest rate at the moment.
When trading strategy twist to the curry should be used only daily charts and the LED strips Bollinger with parameters 2SD (standard deviation) and 1SD. Dunn's time span is needed to help traders make money on forex daily overnight (SWAP), while remaining profitable at the side of the trend in the market. In addition, because we are primarily looking for a deeper trend reversals, the breakthrough zone 2SD-1SD Bollinger is a must have for trading signal to a deal . And after that follow the basic rules for the setup mode "twist on curry".
Opening of the transaction to purchase:
(Open to be, if the base currency is considered the currency pair has a higher interest rate)
1. Put on the D1 schedule for the chosen currency pair 2 sets of indicator Bollinger bands. 1 - pair of Bollinger Band must be installed 2SD, and the 2nd pair of Bollinger bands should be set - 1SD.
2. When the market price breaks through and closes above the lower channel Bollinger 2SD-1SD, enclose an equal volume of 2 deals to buy at market price (for example a lot a lot).
3. Place the safety stop-loss at a minimum of vibration or minus 5 pips and calculate your risk of prisoner deal (transaction risk = The opening price of the transaction - price fixed stop-loss).
4. Set profit target for the 1st open lot at the 50% of the resulting risk of the transaction (that is, if your risk of prisoner deal 100 points, then place take-profit for the first of them at a distance of 50 pips from the entry point into the market ).
5. Move stop-loss to zero (break-even point), when the market reaches the 1st profit target.
6. Close the deal on the 2nd lot, as soon as the market price closes above the upper limit of 2SD Bollinger band indicator or in the break-even, depending on market conditions.
Opening of the transaction for sale:
(Open to be, if the base currency is considered the currency pair has a lower interest rate)
1. Put on the D1 schedule for the chosen currency pair 2 sets of indicator Bollinger bands. 1st pair of bands indikatara Bollinger should be a parameter 2SD, and the second pair of Bollinger bands - 1SD.
2. When the market price breaks through and closes below the upper channel Bollinger 2SD-1SD, enclose an equal volume of 2 deals to buy at market price (for example a lot a lot).
3. Place the safety stop-loss at a maximum of 5 pips plus fluctuations and calculate their risk resulting from the transaction (Transaction Risk = The opening price of the transaction - price fixed stop-loss).
4. Set profit target for the 1st open lot at the 50% of the resulting risk of the transaction (that is, if your risk of prisoner deal - 100 points, put the profit target for the first of them at a distance of 50 pips from the entry point to market).
5. Move stop-loss order to breakeven when price hits vashshey first goal arrived.
6. Close the deal on the 2nd lot, as soon as the market price closes below the lower limit of 2SD Bollinger band indicator or in the break-even, depending on market conditions.
Example 1: Turn on the curry for the currency pair AUDJPY
Step 1 - The currency pair moves out of the Bollinger Bands 2SD-1SD, conclude a deal to purchase at a price of 81.92
Step 2 - at a price of 80.89 closing a deal with a loss of -97 pips.
Step 3 - The currency pair again goes out of Bollinger 2SD-1SD - again open trading position to buy at a price of 81.34
Step 4 - Closing the 1st trading positions open lot at the price of 81.70, reposition the stop loss to breakeven
Step 5 - Close 2nd open lot trading position at the price of 82.40.
Despite the fact that the first transaction was closed by stop-loss, at the opening of the 2nd deal - a couple for 3 trading days of growing up and after changes in the zero and the closure of part 1 of profits - again it continues to move in the right direction for us a few more trading days, and we look forward to in the meantime - and interest over the removal of trade position (positive SWAP-s) GROW!
After a couple of AUDJPY reaches the top - 2SD Bollinger band indicator - we cover the 2nd item of the transaction. As a result of the deal was closed a profit of $ 141 pips, and as additional profit - we still get about 22 pips on percentage (positive SWAP-oh) for the entire range of stay in the trade deal.
Example 2: Rotate the curry - the currency pair AUDJPY
Step 1 - the currency pair moves out of the bands Bollinzhdera 2SD-1SD - conclude the bargain on purchase price 83.55
Step 2: - Profit on 1st Lot trading position at a price of 84.00, reposition the stop-loss in zero
Step 3: - Profit on 2nd Lot trading position at a price of 85.36.
After the entrance of a deal to open a new bar after receiving a signal, the currency pair AUDJPY within a few trading days of the move against our trade position, but it did not knock us on stop-loss, and we remain in trade deal , increasing the interest of our open positions.
Hold position for about two weeks - we got an additional 25 pips profit at the expense of interest (SWAP-s) . As a result, we got on this deal - 251 pips profit.