Thanks again for the informative reply. How do you scale the single GBP/CHF position properly? Please share more ideas on other possible carry trades or examples of other pairs such as GBP/CHF that have a relatively smaller trading range. Do brokers actually pay the exact leveraged interest differential based on central bank rates or are there other considerations when executing a carry trade?
Pip and Scalp just put them on ignore, or buy a pair of "gentlemens pistols" and settle the insults that way. If you are doing well in your trading congrats. But I think there may be some valid questions regarding this strategy. 1. Volatility of the hedge on either leg. It may work now but it will not work forever. So use it while it works but you need a protective exit and a way of identifying when you are entering a time of high volatility on either leg 2. "Juice" Be careful how you are leveraging, one day of volatility could wipe you out. 3. Continual diligence. FX, in my experience is the moodiest market I have traded, so you have to be ready to rotate pairs and strategies to match the mood of not only the market but the mood in the pair don't forget, TA is just measuring traders emotions. Pip don't get discouraged, just ignore the negativity, but if someone tells you a strategy will not work listen and research, someone may be trying to save you some pain, albeit not in the most tactful manner. ES my trading Bud what is up in the woodgrained van world of yours? The Ever Venomous VIPER
Now I am disillusioned, I have fallen and can't get up, ES has sold out to the bourgeois, environment destroying, child killing, capitalist running dog, proletariat oppressing, reactionary right wing military industrial complex. Did I leave anything out? Oh yeah and you would think he would PM about this but Noooooooo. The Ever disappointed VIPER