Hi everyone,
I have a straightforward question. I’ve come across a triple hedge on a certain ECN broker (trying to avoid any filters here).
Would it be alright if I pocket a positive swap from this triple hedge? This setup is rare, and I spent a lot of time looking for it, but I found it, and I’ve been testing it on demo. It could give me about 15 percent a year, but I can’t push it higher because of risks with overnight spreads.
You won’t get 15 percent a year from swaps unless you’re highly leveraged. The swap figure you see is for the year, so you need to split it by 365.
Dillon said:
You won’t get 15 percent a year from swaps unless you’re highly leveraged. The swap figure you see is for the year, so you need to split it by 365.
Yes, it’s pretty leveraged. The broker offers 1:1000 leverage. I’ve been testing it on demo, and apart from the usual ups and downs in profit and loss because of spreads (two pairs are exotic), it seems fine.
Using the “Position Sizer” EA with a demo account, a balance of 3000 USD can make around 1 USD a day.
Which three pairs are you using?
Abi said:
Which three pairs are you using?
I’m not going to share that, I’ve already revealed enough. If too many people start doing the same, it could upset the brokers.
Abi said:
Which three pairs are you using?
I’m not going to share that, I’ve already revealed enough. If too many people start doing the same, it could upset the brokers.
Sorry, but I can’t share my experience then. I grow my account by watching swaps and handling negative rates until my take profit hits. I usually make four to five digits a year on each account.
You need to broaden your perspective on trading. There are many brokers, and not all pass orders to the market, so there’s enough liquidity for everyone. Keep this in mind, and you’ll do well. Whoever told you that brokers won’t like it if people do the same thing is holding you back. And hedging isn’t a problem for all brokers. Indicators like EMA, RSI, and BB work because so many people use them.
@Abi
It’s just that I know some brokers don’t want traders benefiting from swaps without risk. Some brokers like HFM don’t even offer positive swaps since it’s not in their interests. XMTrading specifically says that you can’t use their swap free accounts to do swap arbitrage without risk, even with another broker. I’ve read that they might know what traders are doing with different brokers through KYC and Metatrader. I think you could potentially do it with non-Metatrader, well-regulated brokers, but that’s a different topic. It just shows that they don’t seem to like this sort of strategy.
I’ve been asking around to find out more about who pays swaps, but I haven’t gotten a clear answer yet.
@Ira
How do you expect to get a clear answer if you won’t tell me the pairs? No one even asked about the broker. I only wanted to know about the pairs, and there are so many brokers available. You can hedge or arbitrage among different brokers. It’s even possible on the same broker using different contract types like futures and CFDs. There’s money to be made everywhere!
@Abi
I’ve tried using futures versus CFDs, but it doesn’t pan out. The futures contract often shifts its price a bit each day, so you frequently end up slightly negative.
What I really wanted to know was about pocketing positive swaps with a triple hedge and how brokers view that. There’s no necessity for you to know which pairs I’m using; it could be any, and the outcome would still be the same. What’s the source of the money? I get that you have interest rate differences and all, but that doesn’t fully answer my question.
@Ira
It does work if you know what you’re doing. Gold works well with this. You just need to figure out which pairs to use.