Strategies for carry trading

Which Investment Strategy suits you best?

Whether you are a daytrader or long term investor

Strategy 1: Hold the Hedge (Long-Term)

Focus on preserving capital and beating inflation

Level of Investment
/10
Experience required
/10
Risk Exposure
/10
Maintenance Level
/10

Level of investment: >50,000-100,000 EUR
Experience Required: Low- Medium level experienced trader
Risk Exposure:  Low Risk
Maintenance Level: Monitor Account 1-4 times per month

Disclaimer: Historical results are not a guarantee for future profits!

Whilst this is the simplest of the Swap Hunter strategies it does require some previous knowledge of carry/swap trading.

It also requires the knowledge to know when to re-balance your portfolio once your open positions have accumulated enough Swaps. This means, to know when to close all open trades simultaneously and then re-open new trades to get going again.

You execute positions that will be held for the long term. Build up the Swaps every day. This requires occasional monitoring of correlation strengths, as they vary over time (get stronger or weaker). And to monitor the value of the accumulating NET Swaps.

In layman’s terms:

  1. You open your hedged positions using the Swap Hunter Correlation Matrix Pro.
  2. Then you leave the trades open to accumulate NET Swaps.
  3. Then you close all trades once the swaps accumulated are higher than the floating Profit and Loss (P&L) of your hedged trades.

Simple!

Strategy 2: Release the Hedge (Short to Medium-Term)

Quicker and higher returns with higher risk

Level of Investment
/10
Experience required
/10
Risk Exposure
/10
Maintenance Level
/10

Level of investment: 25,000-50,000 EUR
Experience Required: Medium-High level experienced trader
Risk Exposure: Medium-High Risk
Maintenance Level: Monitor Account 5-20 times per month

Disclaimer: Historical results are not a guarantee for future profits!

So, as we know by now, when using the Swap Hunter, we are hedging ourselves. Which means one asset pair will be in profit and on the other side of the hedge you will have an asset pair that will be in a loss.

Both asset pairs will have generated a positive NET Swap differential as long they have been open for at least one rollover period. So you will already have some profits generated from the NET Swap’s.

However it is now time to Release the Hedge!

  1. Close your positions that are in profit and leave the positions that are in a loss open.
  2. Allow the losing positions to correct in order to recover and increase your Equity.

This could mean a much higher return as we are now cashing in Swaps accumulated over a period of time, whilst also banking profits on the winning side of the hedge and then recovering the losses incurred from the floating P&L on the losing side of the hedge.

This strategy is all about timing. You have to correctly predict when to close the winning trades at right time. This also means correctly timing when the reversal will happen on the losing side of the hedge.

When the open losing trades have recovered their losses or perhaps even moved in to profit after you Release the Hedge, it can be extremely profitable. But does come with more risk analysis and daily monitoring of your trading account and the market in general.

Using the Pro Level indicator and extremely strong support and resistance levels is the best way to utilise this strategy.

Strategy 3: Triple Rollover (Short-Term)

Time effective method for smart Scalpers and Carry Traders

Level of Investment
/10
Experience required
/10
Risk Exposure
/10
Maintenance Level
/10

Level of investment: 10,000-25,000 EUR
Experience Required: High level experienced trader
Risk Exposure: Low-Medium Risk
Maintenance Level: Monitor Account 4 times per month


As the markets are closed on a Saturday and Sunday night, brokers pay out a triple Swap on Wednesday night at the rollover period (22:00 GMT). This is a great opportunity to make short term, high returns using the Swap Hunter.

Only use this strategy with extremely strongly correlated asset pairs.

So let’s play out the scenario:

It is Wednesday afternoon/evening, use the correlation Matrix Pro to find asset pairs with the strongest correlation as to avoid any large P&L differentials. Open the positions. Wait for the rollover period to start and finish.

Now, there may be some spread widening at rollover periods which will momentarily affect the P&L of your positions, but they always tighten and return to their original spread values a few hours after the rollover has finished.

Using this strategy you have made 3 days’ worth of NET Swaps in just a few hours!

This will require heavy monitoring of your positions but only for a very short time period. Literally a few hours on a Wednesday night every week.

Passive Income: Swap Hunter PAMM Account

No trading experience? No Problem!

Level of Investment
/10
Experience required
/10
Risk Exposure
/10
Maintenance Level
/10

Level of investment: 500-5,000 EUR
Experience Required: No level of experience
Risk Exposure: Low Risk
Maintenance Level: Monitor Account 1 time per month


This is an opportunity for you to invest with a group of other investors and to have a highly experienced team who will be utilising all the above mentioned strategies.

This Strategy allows you to do absolutely nothing apart from investing in a PAMM account and allowing the PAMM management team to drive the account forwards. The portfolio will be re-balanced by the PAMM management team periodically, depending on market conditions.

You can receive monthly returns from the profits generated by the PAMM.

It does come with a fee. The PAMM management team will receive 30% of all profits generated for their hard work which includes market analysis, monitoring of the account and overall service which will include some training sessions for members/investors who are in the PAMM.

This is the easiest way to generate a passive income using the Swap Hunter.

Get your Edge over the Market

Find out, what Investment Strategy suits your style

How comfortable are you investing online?

Not at all comfortableSomewhat comfortableVery comfortable
When you think of the word "risk" which of the following words comes to mind first?

LossUncertaintyOpportunityThrill
Have you ever traded FOREX or CFDs online?

YesNo
What kind of investor would you call yourself?

BeginnerProficientAdvancedExpert
When trading do you prefer to use:

Technical Analysis (Studying charts)Fundamental Analysis (news & economic data)Technical & Fundamental AnalysisNot sure
Why are you looking to invest?

Supplement monthly incomeChange professionPay for a special purchaseFor fun
What is you Career status?

UnemployedEmployedSelf-employedRetired
What % return (ROI) do you expect per month?

2% monthly5% monthly10% monthly> 20% monthly
What % of loss are you prepared to accept?

None25% of capital invested50% of capital invested75% of capital invested
Do you have other strategic investments?

Long term, high yield savingsHedge Funds and/or ETF’sStocksOther
Have these investments performed well?

YesMediocreNo
Annual Earnings (in Euro €)

Under €20,000€20,001 to €50,000€50,001 to €100,000> €100,001

GDPR Agreement*
See our privacy policy to learn more about how we use data.

Testimonials

Martin Ziegler
Senior Manager, PAMM Investor

"I was looking for a good investment opportunity in a low interest market. With no experience in Forex or trading. I prefer slow and steady returns, which Swap Hunter provide. Protecting my equity against inflation is my priority and gain a little extra interest."

Simeon Levesque
Simeon Levesque
Head of Sales
FIBO Group LTD

"Carry trading is not new, but with Swap Hunter it is easier than ever to facilitate this strategy. It is used by institutional level investors and the banks. I've not seen a tool like this for MT4 and it is very powerful, if you implement it in your investment portfolio"

João Monteiro
Executive Director
4xCube.com

"Partnering up with Swap Hunter has proven to be extremely successful. As we see traders looking for alternative trading techniques and styles, Swap Hunter provide some of the best tools for this. We can give our traders swap correlation, carry trading indicators and much more. "