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126 days of carry trading · Mar 29, 07:11 PM

My forex carry basket has successfully not lost any money. That was my goal from day one. A hundred and twenty six of them later, I’m down about 2 cents from my initial $1.00:

126 Days of Carry Trading

Right now I’m holding AUD/JPY, CAD/JPY, EUR/AUD, GBP/CHF, GBP/JPY, USD/CHF, and USD/JPY. The EUR/AUD trade is a “revenge trade” I took up after that pair spiked very strongly against me on March 15. I was supposed to have sold it off the previous week according to my rules.

This event and the JPY spike over the 2005 holiday period kept my profit centered about zero. I’m going to keep trading while I travel, but will likely turn down the risk knob from it’s current setting at 20%—i.e. if all trades go stop-loss-triggering sour the account will escape with a value of $0.80.

Currently, the account earns about $0.001 per day in interest (i.e. approx. $0.36 per anum uncompounded, which to date has just about cancelled out my disaster-induced losses). I’ll reset the risk and adjust my positions to about half their current magnitudes before I leave.

* * *

  1. Huh???????????

    — Ferdbirfel    Mar 31, 11:02 AM    #

  2. Yeah. It took a whole 10 minutes to write, and I haven’t let me self re-read it since.

    — Tom    Mar 31, 11:24 AM    #

  3. Everything I’m reading talks of “the unwinding of the carry trade”. Iceland, New Zealand,... is Hungary next?

    — malfridi    Apr 5, 09:16 AM    #

  4. UPDATE: The basket is worth about $1.90 now, mainly on the strengths of the AUD and GBP against the JPY.

    — Tom    Dec 30, 02:45 PM    #

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