1- 100% Hedge
This strategy is to hold the highest interest paying currency on one account and hedge it with another account that do not charge interest on Short positions. Is it possible? Yes, I have been doing it for a long time and made many thousands already.
Advantages: Very low risk, making interest every day, this strategy is simple and easy to learn.
Disadvantages: Need two accounts, one paying interest and another one is interest free. Need large investment capital to make good income. Need to watch both accounts to monitor any sign of out of balance. Need to transfer money between accounts to rebalance.
***Let’s do the math to see much we can make a month and a year.
If we hold 1 GBP/JPY standard lot, we need a margin of $950, margin reserve 3K, daily interest $40.
If we have 40K account to run our hedge fund, we can make $12,000.00 per month.
$4,000 X 10 lots = $40,000.00
$40 per day X 10 lots = $400.00 of interest earn per day
$400 X 30 days (1 month) = $12,000.00 per month
$12,000 X 12 (12 month) = 144,000.00 per year
That is 360% return of the original investment.
This calculation is not even using compounding. We assumed that we withdraw that 12K of profit every month. If we reinvest, the compounding interest is very high.
To learn more, Click on this link: http://goldenmoneytree.com
Note: We also need another 40K at interest free account to hedge our interest paying account.
2- GMT Package Hedge
This strategy we don’t need two accounts, and we don’t need interest free account. In fact, we need to find a bank/broker that pays the highest interest (difference bank/broker pay difference rate). Make sure the gap between the interest we pay them and interest they pay us is as small as possible, so that we can keep more of our net interest.
GMT package hedging strategy, we buy the highest interesting paying currency pair (GBP/JPY), and we hedge it with a lowest interest paying pair (CHF/JPY) so that after they paid us and we paid them, we still have a good chunk of net interest to keep.
The best time to enter GMT hedge is during negative swing. We can use demo account to determine the swings or use Daily Bollinger Band 20,2 of GBP/CHF to determine the place for enter and exit GMT hedge. Enter only when GBP/CHF price at or near the bottom of daily Bollinger Band and exit GMT hedge when GBP/CHF price at the top of daily Bollinger Band.
Advantages: We don’t need two accounts to hedge. No need for interest free account. Need smaller investment capital to collect more interest than the 100% hedging method. No need to transfer fund to rebalance the account. Best of all, we can liquidate the hedging pair for profit when market swing positive to our side.
Disadvantages: A little higher risk than 100% hedge due to the uncertainty of currency correlation. But if we keep enough margins to hold the trade during negative swing, eventually, it will swing back to positive side.
GMT Package Hedging strategy detail:
Buy 100k GBP/JPY and sell 180K CHF/JPY at the same time. Make sure you keep enough margins for about 200 pips swing. I never have more than 200 pip swing against me, but I reserve enough margins in the account just in case.
You can do dollar averaging technique. Instead of buying all at the same time, you can buy 1 lot each time. The ratio is 1 GBP/JPY and 1.8 CHF/JPY. Enter the hedging pair at the same time. The best time to enter is during negative swing.
To view my GMT package hedging in action:
1- Download FXDD Meta Trader 4 Demo at : http://www.fxdd.com/meta_trader.html
2- Log in to account id: 409412
3- Password: Gmt12
Once you log in, you can view my trades.
3- GMT Picky back trade
This one is fun and challenging. I suggest you do this trade with your interest free account to keep your interest free broker happy. If you only hedge your position with interest free and do not do any trade, the broker is not making any profit and they may close your interest free account. So do some trade with Interest free broker to make them happy and you can also make money using this picky back trade.
Since Interest free account carry all Short trades or Sell, it draw down your margin if the market going up, and gaining margin when market going down. So what you do is to watch gbp/jpy chart to find support and resistance. Once you see it, lay down Long grid only in that channel. Set it to buy every 10 or 15 pips and take profit if it moves up 10 to 15 pips.
Use only one or two mini lot per order; unless you have more than 50K in your account, then you can try full size lot. Never have more open long trade than 50% of your Short. For example, if you have 5 lot Short, you do not want to do more than 2.5 Long trade in that account.
If the market move against you, don’t sell it at a lost, just hold it, you will be ok because your Short positions are cover the margin, you never get a margin call if you don’t buy more than your Short positions.
Note: This system only protect you against margin call in that account, but NOT protect you against lost. If GBP/JPY drop and never return forever, you will need to hold that lost trade forever too. So only do low gear small trade.
Contact me if you have any question.
Email me at bongrak@yahoo.com or call my cell phone (443) 306-3128.
Website: http://goldenmoneytree.com
Regards,
Ramsey
This strategy is to hold the highest interest paying currency on one account and hedge it with another account that do not charge interest on Short positions. Is it possible? Yes, I have been doing it for a long time and made many thousands already.
Advantages: Very low risk, making interest every day, this strategy is simple and easy to learn.
Disadvantages: Need two accounts, one paying interest and another one is interest free. Need large investment capital to make good income. Need to watch both accounts to monitor any sign of out of balance. Need to transfer money between accounts to rebalance.
***Let’s do the math to see much we can make a month and a year.
If we hold 1 GBP/JPY standard lot, we need a margin of $950, margin reserve 3K, daily interest $40.
If we have 40K account to run our hedge fund, we can make $12,000.00 per month.
$4,000 X 10 lots = $40,000.00
$40 per day X 10 lots = $400.00 of interest earn per day
$400 X 30 days (1 month) = $12,000.00 per month
$12,000 X 12 (12 month) = 144,000.00 per year
That is 360% return of the original investment.
This calculation is not even using compounding. We assumed that we withdraw that 12K of profit every month. If we reinvest, the compounding interest is very high.
To learn more, Click on this link: http://goldenmoneytree.com
Note: We also need another 40K at interest free account to hedge our interest paying account.
2- GMT Package Hedge
This strategy we don’t need two accounts, and we don’t need interest free account. In fact, we need to find a bank/broker that pays the highest interest (difference bank/broker pay difference rate). Make sure the gap between the interest we pay them and interest they pay us is as small as possible, so that we can keep more of our net interest.
GMT package hedging strategy, we buy the highest interesting paying currency pair (GBP/JPY), and we hedge it with a lowest interest paying pair (CHF/JPY) so that after they paid us and we paid them, we still have a good chunk of net interest to keep.
The best time to enter GMT hedge is during negative swing. We can use demo account to determine the swings or use Daily Bollinger Band 20,2 of GBP/CHF to determine the place for enter and exit GMT hedge. Enter only when GBP/CHF price at or near the bottom of daily Bollinger Band and exit GMT hedge when GBP/CHF price at the top of daily Bollinger Band.
Advantages: We don’t need two accounts to hedge. No need for interest free account. Need smaller investment capital to collect more interest than the 100% hedging method. No need to transfer fund to rebalance the account. Best of all, we can liquidate the hedging pair for profit when market swing positive to our side.
Disadvantages: A little higher risk than 100% hedge due to the uncertainty of currency correlation. But if we keep enough margins to hold the trade during negative swing, eventually, it will swing back to positive side.
GMT Package Hedging strategy detail:
Buy 100k GBP/JPY and sell 180K CHF/JPY at the same time. Make sure you keep enough margins for about 200 pips swing. I never have more than 200 pip swing against me, but I reserve enough margins in the account just in case.
You can do dollar averaging technique. Instead of buying all at the same time, you can buy 1 lot each time. The ratio is 1 GBP/JPY and 1.8 CHF/JPY. Enter the hedging pair at the same time. The best time to enter is during negative swing.
To view my GMT package hedging in action:
1- Download FXDD Meta Trader 4 Demo at : http://www.fxdd.com/meta_trader.html
2- Log in to account id: 409412
3- Password: Gmt12
Once you log in, you can view my trades.
3- GMT Picky back trade
This one is fun and challenging. I suggest you do this trade with your interest free account to keep your interest free broker happy. If you only hedge your position with interest free and do not do any trade, the broker is not making any profit and they may close your interest free account. So do some trade with Interest free broker to make them happy and you can also make money using this picky back trade.
Since Interest free account carry all Short trades or Sell, it draw down your margin if the market going up, and gaining margin when market going down. So what you do is to watch gbp/jpy chart to find support and resistance. Once you see it, lay down Long grid only in that channel. Set it to buy every 10 or 15 pips and take profit if it moves up 10 to 15 pips.
Use only one or two mini lot per order; unless you have more than 50K in your account, then you can try full size lot. Never have more open long trade than 50% of your Short. For example, if you have 5 lot Short, you do not want to do more than 2.5 Long trade in that account.
If the market move against you, don’t sell it at a lost, just hold it, you will be ok because your Short positions are cover the margin, you never get a margin call if you don’t buy more than your Short positions.
Note: This system only protect you against margin call in that account, but NOT protect you against lost. If GBP/JPY drop and never return forever, you will need to hold that lost trade forever too. So only do low gear small trade.
Contact me if you have any question.
Email me at bongrak@yahoo.com or call my cell phone (443) 306-3128.
Website: http://goldenmoneytree.com
Regards,
Ramsey
