EUR/USD vs EUR/GBP Trading Idea

Here's a Trading Idea for ya. Utilizing the correlation between EUR/USD and EUR/GBP take opposing trades in the two pairs so you're still swap positive.

Example; 1.5 standard lots per every $10k of account balance. So 1.5 lot buy on the EUR/USD and a 1.5 lot sell on the EUR/GBP (assuming a $10k account balance). At a combined swap of $21 a day that's $630 a month on a $10k account. 6.3% just for holding the positions.

So on a daily basis the pairs move together 66.9% of the time. If there are equal and opposing positions then 37.1% of the time the combined positions will be in profit or loss. Wait out the loss at a holding rate of 6.3% a month and take profit when you reach 2%-5% of your original account balance.

Sound like it's time for a demo farward test. Good Pip Hunting.

My Story

Several years ago I began studying the Foreign Exchange Spot Market as a way of making money for my family and others. I started with the VT (Visual Trader) Platform because it’s programmable and I could test my ideas on historical market data. I worked with the VT Platform and programmed various trading strategy ideas for about a year. Unfortunately, my progress was stifled due to the inherent limitations of this platform.

During the summer of 2007 I came across a trading strategy that had a lot of potential and I wanted to test it. But it would require a different Trading Platform with more programmability and account features than VT. I found the MT (Meta Trader) Platform but realized the application used a different programming language that I was not familiar with.

I hired a great programmer over the Internet who had experience trading the Forex, and together we developed the Trading Strategy that I have been using live since November of 2007. It runs automatically on a dedicated, battery backed server in the United States and I check it once a day, via remote desktop, to look at the market.

The MT platform programmability has allowed us to test this strategy as far back as 2000. In doing so we have optimized the system for the best results during every kind of market condition. We are continually striving to make the YukonFX Trading System even better by testing new and different ideas to integrate with it.

Currently, the Trading System activates itself by using various technical indicators and only takes trades in a swap positive direction so daily interest is always accumulating. It's designed to function with a draw down that eventually earns itself into a profit.

At this point in time, it’s optimized for use on the EUR/JPY currency pair and it’s been designed to increase lot size as the account grows thereby effectively compounding performance. Even with flat market conditions this Trading System still profits from small fluctuations in price.

This past week I saw my account grow by 2.58%! Since November of 2007 I've averaged 2.61% a week. Let's see what this trading week has in store for us.

A new day is dawning

A new day and a brand new blog. The purpose of this blog is to write about my experiences with the YukonFX Trading System and life in the Yukon.