this is just an idea: for those who want to make income on thier money without trading here we go:

US/JAP
sawp rate is 13.5 standard account( source http://www.interbankfx.com/swap_rates.php )

if you have 1000$ and you bought 3 mini lots each is 0.1 then over one year
money = No. of lots x swap rate(.135 for minilot size 0.1) x 365 = 147.8 that is about 15% income in one year

Now lets say the market went to its ever low value which is 80 and the current value is 116.77 so lets say the market went all the way against you that would be 116.77-80=36.77 that would be 3677 pips

now let calc. (.3) lots x 3677= that is 1103.1 $ But don't forget that for the market to reach its ever low value which was on 1995 , it would take lets say about 4 to 5 years to do that, the price just does not drop that sudden, beside we are already trading on the low side of this pair.

So in four year on .3 lots are generating profits on the sawp, will be
147.8(calc from above) x 4 years = 591.3$ and at that time we said the market has reached its ever low value.

So in the worst case you will lose half of your money in 4 years time,
Best case is the market goes with you ... I wont take the ever max. value of US/JAP i will take a mid value lets say 160 which was on 1990
so 160 - 116.77= 43.23 that would be 4323 pips

so .3x 4323= 1296.9 plus it would take around 4 years lets say to reach this number so the sawp would be 147.8x 4= 591.3 total of 1888.2 +1000 = 2888.2 so you have more than double of your money in 4 years.
I think that would be better than money in the bank ? I hope i am not wrong in my calculation if I am then pls correct me !!
all of which we have assumed the fix sawp rate .135 for mini lots size account and we took the worst cause and one of the good cases

All you have to do is sit and count the days
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Update
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It seems I went far with the math, it happens so dorp the idea I was wrong

Yeah, MiniMe, it's just like robbing money from the bank, interbank that is. You're right though. I know a couple of traders who just take out the swap "meat" fee income from their account for their weekly fun money. They are active traders though.

ENJOY!

fxcruiser

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why, US/JAP, GBP/JPY has better returns, but why does it have better returns than NZD/JPY since the NZD has a higher interest rate.

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There is no candle.

US/JAP
cause the spread size is 3 pips on normal trading day .... so if you want to get out of a trade to lock profit and later get in a trade again its will be easier

the other pairs have a very high spread, also GBP/JAP moves more than 120-200 pips per day so its the most dangerours pair to trade.

But yes you have a point and its valid, you can apply this rule at any pair after you draw the trend lines and study the pairs and GBP/JAP has almost the same curves and trend lines like US/JAP with more interest rates

Fainally I did the calculatoin after I draw the trend lines on the US/JAP and not any other pair, you can do the same at any other pair, as long as you get the idea and you know what you are doing.

Correct me if I’m wrong, but one mini lot (0.1) of USD/JPY moves at $0.84 per pip. If this is indeed correct, the loosing 3677 pips means you are out of $9266.04 (3 mini lots x $0.84 x 3677 pips) as opposed to your proposed $1103.1. This would imply that wipe-out would occur at ($1000 equity / (0.84 * 3) ) = -396 pips. i.e. the market would only need to fall 396 pips and your $1000 equity is gone, now compare that to annual volatility and I think your math’s are horribly skewed no matter how much swap you collect.

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"I do not need a compass to tell me which way the wind is shining."

If one has a good EA he can just trade on buy side. Therefore he don't need to worry about market go up or down.

Yes but the whole idea is about making moeny from the sawp rate which is keeping your position ( for months ) then move your stop loss to protect your pips, if the market closed on stoploss wait and enter again, so this is a very long plan to make money without too much trading.

I've been thinking similar idea for quite some time.
The problem may happen when:
Interest rates of different contries change from time to time. Sawp rates change with interest rate change. What if when sawp rate goes againt me and I also lost some equity since only trade I do is taking stoploss.
Just my two cents.

I want to be as positive as possible to all threads but this one is a No-No. It's no worth to earn little interests by risking the whole account.