Classic Techniques  |  OCT 2007

Trend-Following And The Interest Carry Trade by Russell Sands

Trend-Following And The Interest Carry Trade by Russell Sands Here’s a look at how the Turtle system can be combined with forex trading. Forex trading has been around quite a while, and so has the Turtle system. But it has only been in the last year or so I figured out how to put the two together. After about six months of work, the first Turtle foreign exchange manual was written, and the system released at the beginning of 2007. We all know that trendfollowing is a valid concept of trading, and we also (should) all know by now that currencies are among the best trending of all markets, so it is natural we should blend them together. WHAT IS THE CARRY TRADE? There is a fundamental concept of all foreign currency trading known as the “carry trade.” It is not a part of the Turtle trading method, but it still has an effect on our trading. When you trade a forex pair, you are buying the currency of one country and selling that of another.

by Russell Sands