Australian Dollar vs New Zealand Dollar Monthly Strategy ~ attacking a range market with Looping If-Dun ~ [Relaxed Forex]
This article is a reprint and rewrite of FX攻略.com March 2019 issue articles. Please note that the market information described in the text differs from the current market.
Profile of Yuttari Forex
Yuttari Forex. A retail investor. A “slow and steady trade” trader with extremely few trades. Daily study with aim to achieve great success in FX. Holds accounts with various FX brokers and is familiar with a wide range of services in the industry.
Official blog:FX Slow and Steady Trading
Official blog:FX Real Trade Dojo
The author prefers long-term repeat-type orders. There are two reasons for this.
One reason is that it can be left alone. There are various trading methods in the world. However, no matter the method, it involves repeating the action of “log in, view charts and information, consider trades, actually buy and sell.”
If you love FX, this is not burdensome. But since FX is traded while prioritizing daily life, there are times when you must distance yourself from FX. Even then, repeat-type orders trade automatically.
The second reason is that stop-losses are not very realistic. In the author's case, using repeat-type orders to trade AUD/JPY in the range of 55 to 85 yen. The past record of yen strength is 55 yen, so this is the basis for the trades.
In practice, profits have already been taken countless times, and swap points are earned daily. Therefore, even if it falls below 50 yen, forced liquidation does not occur. As time passes, reaching 45 yen or 40 yen can still avoid forced liquidation. At this level, one might predict that forced liquidation would no longer occur.
Alternatively, when earnings are large, the initial capital is moved back from the FX account to a bank account. Then, even if forced liquidation occurs, the original funds remain unharmed. This is possible with passive trading, which is a major advantage.
Disadvantages of passive trading with repeat-type orders
However, this method has one fairly large drawback. The required capital tends to be large. For AUD/JPY, the author places buy orders scattered between 55 and 85 yen. The range is 30 yen, i.e., 3000 pips. If you set repeat-type orders across such a wide range, you need a corresponding amount of funds.
Therefore, while executing passive repeat-type orders, consider configurations that require less margin.