I-NET Securities and Loop Ito Dan FX automated trading go their own way! The Apple Shock shakes 2019—is this the beginning?
Since the beginning of 2019, the market has been volatile, and the currency market has surged due to the Apple shock, causing a rapid appreciation of the yen.
Normally, this should not be the end of the story.
USD/JPY, since I only hold the spot, for people who originally consider 100 yen as the baseline.
Is this the beginning? I will at least mentally prepare.
Since Lehman, I have been engaging in repeat-if-dun automatic trading
At first, I was greatly helped by m2j. I moved here a few years ago.
This has been nearly ten years of association. During that time, we have faced many shocks.
Because the year has started off turbulent, I will introduce a little about Inet Securities FX’s Loop IFD (Loop If Done).
↓ AUDJPY (buy) profitability list.
Looking at it, the best earnings come from B20 with 13040 pips (about 130,000 yen).
But I won’t choose that; what I would choose is the B80 with 25 strategies.
The reason is the profit of B20 is 13040 pips; the chosen B80’s profit is 3760 pips. Both are compared using 1,000 currency units.
To align the risks, B20 remains at 13040 pips while B80 becomes 3760 pips * 4, turning into 15040 pips.
(If B20 drops by 80 pips, it would incur holding 4000 currency units)
Therefore, with the same risk, B20 minus 1,000 currency is less profitable than B80 minus 4,000 currency.
With a principal of 1,000,000 yen, the risk is too high, so I would set B80 to 2,000 currency and aim for 7,520 pips.
(This is almost the same as B40 minus 1,000 currency)
With 25 strategies at 80 pips intervals, I will set it to a 20-yen range.
(From 84 yen to 64 yen, everything is covered) This is the basic setup.
① With this, the yield is around 7%, and leverage is around 7x.
When fully activated, I hold 50,000 currency units, and the unrealized loss would be around 500,000.
The automatic stop-out line will be around 57 yen.
② The yield becomes about 3.5%, but by keeping leverage within 3x, it can be operated safely.
(Capital efficiency would be worse)
From here, further gains require somewhat better market sense.
If a Lehman-like XX shock occurs again under the setup in (1), I think it will not withstand as is.
(What to do if AUD falls below 60 yen)
I would add about 300,000 yen, double the leverage, and set the automatic stop-out line around 50 yen to protect everything.
Why protect the position? Simply because it’s the AUD.
In the case of USD/JPY, the thinking is somewhat different.
Because I am also building wealth, if it falls below 64 yen I would purchase more.
Therefore, I choose not to trigger a stop-out at the setup.
Even the 2019 Apple shock doesn’t affect good work.
For reference (excerpt)
Everyone has different views on risk and return, so please operate in a way that suits you.
Since I am building a personal pension, I must be prepared for some risk.
Originally, I came from a swap-focused background, so I have been involved in various shocks.
I engage in two FX automated trading systems, and also manual FX trading.
Please treat this as solely for reference.
Please consider that there are people who think this way too!
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