4-year undefeated trap trading method
Repeating-type・Trap tradingI started trading four years ago after learning the concept.
The method I thought of at that time has been profitable, so I would like to share it.
Repeating-type・Trap trading strategy
“Swiss franc strategy”
It may not be familiar to Japanese people, buttrap trading using the Swiss francis considered to be very effective.
Set a fixed range,place traps(place new buy orders evenly within the range) and trade.
Profit is taken at about 10–20 pips per position.
After taking profit on each position,re-apply traps(new buy orders)again.
This is all about repeatedly executing this trade.
Basically,selling Swiss francs(CHF short) is considered.
A stop is set for safety, butdo not cut losses(tolerate unrealized losses)strategyis being considered.
The advantages of the “Swiss franc strategy” are threefold.
①The franc has negative interest rates
Selling francs yields the highest swap rate among all currencies..
Therefore, even if a position is at a loss, a daily swap income keeps coming in.
②The franc tends not to spike to extreme highs(franc strength).
If you understand Swiss central bank policy, the lower bound (franc strength) may be limited.
Switzerland is surrounded by Germany, Austria, Italy, and France.
It is surrounded by countries that use the euro (EUR).
Therefore,strong franc would cause trouble for Switzerland, so
③Currently, the franc is rising against all currencies
As noted, the Swiss National Bank dislikes a strong franc, sowhen the franc strengthens, it intervenes to sell francs.
Therefore,the downside of cross-franc pairs tends to be limited.
Moreover, since the franc is moving higher, even if you hold a short franc position,the decline tends to be limited, resulting in smaller unrealized losses.
Considering these three points, the trap trading strategy seems very easy to configure.
Target currency pairs
NZD/CHF・AUD/CHF・CAD/CHF・USD/CHF
are the four currency pairs considered.
Requirements for trading
Capital: at least 1 million yen
Expected annual yield: 10% to 30%
Effort: adjust or check the strategy a few times a year
Recommended FX brokers: Forex.com or FX Fidante (MT4)
Used EA: “RangeHunter”
We will introduce a trading method that uses the EA called “RangeHunter.”
To trade the above “Swiss franc strategy,”you can automate the repeated traps(new buy orders)setup?
We created our own EA “RangeHunter” to do this.
The trap trading and repeat-order strategies are supported, and by configuring parameters, the above “Swiss franc strategy” can betraded almost automatically.
If the risk setting is kept somewhat high,annual yield30%may be achievable.
I started with more than 10 million yen in capital, but by significantly reducing risk,annual yield10%is the level I aim for.
I trade with the high-swap NZU/CHF pair.
I change currency pairs according to the situation at the time.
Trading history is here
↓↓↓ Click to view ↓↓↓
History: May 2015 – October 2016
There are periods with breaks, but I have continued trap trading using overseas brokers or switching brokers.
I believe this method is still usable.
Also,as long as capital management is correct, almost never losingis possible.
Please feel free to use as a reference!
