Super Carry Trade Trading System

This system has been producing for me between 8 and 10% profits per month, or approximately 100% per year or greater, depending on market conditions. The idea of this strategy was coming from Oanda “beginner” forum from “Knightrider” who has doubled his account yearly for the past 2 years.

Trading Rules:

Currency pair : GPB/JPY
Long trades only (interest positive)
Use 0.5% of your Net Available Balance on each trade (Oanda does this automatically)


1.Enter at any time with a market order

2.Place limit orders (long) at 10 pips above initial entry. This means that you place a limit order to buy at 10 pips above your entry, and you place 10 pip profit targets on each of these orders. You place these orders up to 200-400 pips above the current market price, or even higher if you would like. Your objective is to take profit and lock it in on all these orders as the market moves up.

3.Place 10 pip profit targets on all limit orders, up to 200-400 pips above current market. One time I entered my limit orders up to 200 above the current market price, and when I got home from work discovered that the high went well above the last order, it actually went up nearly 400 before dropping back down. I missed all that profit from my last order at 200 above market price to 400 above. Now I usually place orders up to 400 pips above in case of a nice trend or spike.

4.If market drops (carry trade unwinds) by 200 pips enter a market order once per day, with no take profit, in an attempt to lower the average price of all orders to within 100-200 of current market. Each additional market order lowers the “average” of your orders.

5.Enter limit orders (long) at 10 pips above this market order, up to the orders already entered.

6.At any time you have more than 1 order open, and the market is above the average price, close all orders (Oanda makes this easy to do).

7.If market continues to drop, continue to place orders (as in numbers 4-6 above), attempting to keep the “average price” within 100-200 pips of current price.

Pros:

·Effective in all market conditions (ranging, trending).
·Provides profits from both trading and interest.
·Only monitor the markets once or twice per day, as desired.

Cons:

·Caution is needed during carry trade unwinds. If need be, during severe unwinds, limit further buying to only 400-500 pip drops.

Note:
Oanda is perfect for this system in that they show your "average position" right on the chart; makes it so easy. Additionally they have "one click" to close all positions. Finally they're spreads are very low: GPY/JPY is between 4.5 and 7 most of the time.