JLS Carry Trading & Momentum Trading Following Trading
Carry trading and momentum trading represent the common practices operated by the carry traders and momentum traders, the worlds' largest capitalized traders in competing with global traders with various trading models (technical, fundamental and the likes). The competition result the prices to bearish and bullish interior the established target zones. However, by average the directional trading of the carry traders and the momentum traders lead the directional prices interior the target zones and this is in compliance to the rule of thumb of equilibrium exchange rate theory.
To do so, the trading operation shall met with the carry traders directional prices and the momentum traders directional prices by the equilibrium exchange rate theory at the same timing.
Operating Modul 1:
Carry Trading: Long/buy USDCHF , NZDCHF , CADCHF , AUDCHF , GBPCHF , EURCHF
Carry Trading: Long/buy USDJPY , NZDJPY , CADJPY , AUDJPY , GBPJPY , EURJPY , CHFJPY
Momentum Trading: Long/buy NZDUSD , CADUSD , AUDUSD , GBPUSD , EURUSD ( USDCAD Short/sell)
Momentum Trading: Short/sell EURNZD , EURCAD , EURAUD , EURGBP
Total 22 Currency Pairs
Operating Modul 2:
Unwinding Trading: Sell/short USDCHF , NZDCHF , CADCHF , AUDCHF , GBPCHF , EURCHF
Unwinding Trading: Sell/short USDJPY , NZDJPY , CADJPY , AUDJPY , GBPJPY , EURJPY , CHFJPY
Momentum Trading: Sell/short NZDUSD , CADUSD , AUDUSD , GBPUSD , EURUSD ( USDCAD Short/sell)
Momentum Trading: Long/buy EURNZD , EURCAD , EURAUD , EURGBP
Total 22 Currency Pairs
The trading operation obligates to be executed or entered at lower bands/ceilings and or at upper bands/ceilings and/or near them of the 1000-1500 PIPs target zones and to allow the trading positions to be fluctuated interior the target zones until they reach their upper bands/ceilings and or the lower bands/ceilings and depending on the directional of the trading.
Some of the trading positions may be with "floating profits" and some of them with "floating losses" as the result of the competition between the carry traders and momentum traders versus global traders. The floating profits to off-set the floating losses, at such the portfolios are collectively managed with "assumed risk management" or ARM, and/or what the level of total risk assumed for total expected profit.
By allocating 1 % equity for trade to the 22 currency pairs then the utilized equity about 22 % leaving the margin for 78 %. At 5x leverage ratio then 1000-1500 PIPs target zones generate about 50 % to 75 % per turnaround time, at 10x leverage ratio results 100 % to 150 % and at 20x leverage ratio results 200 % to 300 % and at 40x leverage ratio results 400 % to 600 % per target zone turnaround time. Looking for 500-600 % per turnaround time of the target zone is realistic.
Advantages:
Trading with confidence by following the world's largest capitalized carry traders and momentum traders with hundreds trillion capital in place. Carry traders and momentum traders trading activity is inline to and in compliance to theories, policies, regulations and practices of the global central banks. While carry traders and momentum traders to trade with "unleveraged" for 10 % profit but "leverage facility" offered by small and medium size brokers jacked up the 10 % to 500 %. No leverage facility offered by worlds' largest brokers, such as Globallink, ICAP , FXAll. The target zone turnaround time could 3 months to 6 months and offer substantial time for assessment, measurement, analysis and valuation of their performance and much time for "trading and holidays". Target zone trading limit the attention to global central banks' policies and the current or on-going established target zones.
Disadvantages:
Target of profit likely much lower than technical traders and fundamental traders or other trading models.
To do so, the trading operation shall met with the carry traders directional prices and the momentum traders directional prices by the equilibrium exchange rate theory at the same timing.
Operating Modul 1:
Carry Trading: Long/buy USDCHF , NZDCHF , CADCHF , AUDCHF , GBPCHF , EURCHF
Carry Trading: Long/buy USDJPY , NZDJPY , CADJPY , AUDJPY , GBPJPY , EURJPY , CHFJPY
Momentum Trading: Long/buy NZDUSD , CADUSD , AUDUSD , GBPUSD , EURUSD ( USDCAD Short/sell)
Momentum Trading: Short/sell EURNZD , EURCAD , EURAUD , EURGBP
Total 22 Currency Pairs
Operating Modul 2:
Unwinding Trading: Sell/short USDCHF , NZDCHF , CADCHF , AUDCHF , GBPCHF , EURCHF
Unwinding Trading: Sell/short USDJPY , NZDJPY , CADJPY , AUDJPY , GBPJPY , EURJPY , CHFJPY
Momentum Trading: Sell/short NZDUSD , CADUSD , AUDUSD , GBPUSD , EURUSD ( USDCAD Short/sell)
Momentum Trading: Long/buy EURNZD , EURCAD , EURAUD , EURGBP
Total 22 Currency Pairs
The trading operation obligates to be executed or entered at lower bands/ceilings and or at upper bands/ceilings and/or near them of the 1000-1500 PIPs target zones and to allow the trading positions to be fluctuated interior the target zones until they reach their upper bands/ceilings and or the lower bands/ceilings and depending on the directional of the trading.
Some of the trading positions may be with "floating profits" and some of them with "floating losses" as the result of the competition between the carry traders and momentum traders versus global traders. The floating profits to off-set the floating losses, at such the portfolios are collectively managed with "assumed risk management" or ARM, and/or what the level of total risk assumed for total expected profit.
By allocating 1 % equity for trade to the 22 currency pairs then the utilized equity about 22 % leaving the margin for 78 %. At 5x leverage ratio then 1000-1500 PIPs target zones generate about 50 % to 75 % per turnaround time, at 10x leverage ratio results 100 % to 150 % and at 20x leverage ratio results 200 % to 300 % and at 40x leverage ratio results 400 % to 600 % per target zone turnaround time. Looking for 500-600 % per turnaround time of the target zone is realistic.
Advantages:
Trading with confidence by following the world's largest capitalized carry traders and momentum traders with hundreds trillion capital in place. Carry traders and momentum traders trading activity is inline to and in compliance to theories, policies, regulations and practices of the global central banks. While carry traders and momentum traders to trade with "unleveraged" for 10 % profit but "leverage facility" offered by small and medium size brokers jacked up the 10 % to 500 %. No leverage facility offered by worlds' largest brokers, such as Globallink, ICAP , FXAll. The target zone turnaround time could 3 months to 6 months and offer substantial time for assessment, measurement, analysis and valuation of their performance and much time for "trading and holidays". Target zone trading limit the attention to global central banks' policies and the current or on-going established target zones.
Disadvantages:
Target of profit likely much lower than technical traders and fundamental traders or other trading models.
Comment:
The current trading operation is TRADING MODUL 1 of which both JPY-pegged pairs and CHF-pegged pairs re-carrying activity and lifting the USD-pegged pairs to upward (ceentral bands/central parities) and pushing EUR-pegged pairs to their new lower bands/ceilings.
Comment:
Comment:
Comment:
The second tranche of carry trading is underway by driving the USDJPY, USDCHF, NZDJPY, NZDCHF, CADJPY, CADCHF, AUDJPY, AUDCHF, GBPJPY, GBPCHF, EURJPY, EURCHF and CHFJPY to upward to their upper bands/ceilings. This is supportive for driving the NZDUSD, CADUSD, AUDUSD, GBPUSD and EURUSD to upward.
Comment:
My on-going Carry Trading Following Trading and Momentum Trading Following Trading:
Long trades USDCHF, NZDCHF, CADCHF, AUDCHF, GBPCHF, EURCHF with margin uses equivalent to long trades USDJPY, NZDJPY, CADJPY, AUDJPY, GBPJPY, EURJPY and margin uses equivalent to long trades NZDUSD, (short USDCAD), AUDUSD, GBPUSD, EURUSD and margin uses equivalent to short trades on EURNZD, EURCAD, EURAUD and EURGBP.
Long trades USDCHF, NZDCHF, CADCHF, AUDCHF, GBPCHF, EURCHF with margin uses equivalent to long trades USDJPY, NZDJPY, CADJPY, AUDJPY, GBPJPY, EURJPY and margin uses equivalent to long trades NZDUSD, (short USDCAD), AUDUSD, GBPUSD, EURUSD and margin uses equivalent to short trades on EURNZD, EURCAD, EURAUD and EURGBP.