A Good Question

Hi Everyone,

Here is a question I received tonight that needs to be shared.

Hi David, Found the video on the Swap Collector very interesting. To make a positive swap on the EURUSD, you have to place buy positions. To do this while the pair is in a downtrend would be fairly costly. What would the results be if you ran the back test for the periods 01OCT08 to 31OCT08 or 01JAN09 to 31JAN09. Would you expect to leave the positions run until a positive result is made in following months. This may or may not occur?

and my answer

Good question.I would first like to say that there are many ways to play the Swap Collector.I like to use Murray Math Lines on the H4 and daily charts to get direction.I only mentioned eur/usd and usd/chf because they are opposites and most time what one has in losses the other has in gains...except when it comes to swap.There are 30 plus pairs to choose from with many combinations that would have paid positive swap during those dates you mentioned as EUR was dropping like a rock.Mind you,the sell on the eur/usd would have made up more for the loss of swap as the buy on usd/chf would have added to the bottom line.
I don't want anyone limited by what I use or say as there are many combinations.The swap collector isn't a method carved like other Ea's where 4-5 custom indicators all have to line up for a trade.Being time based it is the tool to take advantage of a number of pairs that are on the move while others are dormant. If you just always remember to take direction from a higher time frame and apply the direction to a pair that pays positive swap then the lot size can be configured to balance the available equity and free margin.The unfortunate truth about strategy tester is that the standard version doesn't compute daily swap payments so by hand it would take forever.I did however run both the eur/usd and usd/chf for the month of October 2008.Lot size was 10 cents and target 100 pips.The usd/chf closed for the month with +$139.34.The eur/usd -$1239.17 and I couldn't figure what the swap was.Interesting though in holding the trades for the next month of November,eur/usd for 2 months only changed to -$1314.63 but the usd/chf changed to +976.68 thus leaving a $300+ minus balance carrying into December.Again no swap figured in. If I can help or suggest other ways to benifit in using the swap collector,please email me with your questions.

The bottom line here is to remember that the Swap Collector can be used many ways to make profit.Please don't hesitate to email me with your questions.