The Dollar Carry Trade strategy ranks USD currency pairs by interest-rate differential and goes long USD against low-carry currencies and short against high-carry currencies. Rebalances monthly on the first trading day.
Entry Criteria: Rank by carry; long low-carry, short high-carry.
Long/Short: Both.
Exit Criteria: Monthly rebalance.
Stops: No explicit stop.
Default Values:
K = 3
CandleType = TimeSpan.FromDays(1).TimeFrame()
[*]Filters:
Category: Fundamental
Direction: Both
Indicators: Rates
Stops: No
Complexity: Intermediate
Timeframe: Daily
Seasonality: Yes
Neural Networks: No
Divergence: No
Risk Level: Medium