Been holding positions for months and the carry trades just aren’t working like they used to.
Zero rates killed most of my USD/JPY strategy. Looking at crypto but the volatility is eating into consistent gains.
Anyone else restructuring their portfolio because of this rate environment?
Switched to EUR/GBP and GBP/CHF when rates tanked.
Same problem here. I switched to shorter timeframes and focus more on trading news events now.
Low rates made me cut my holding periods way down - now I’m chasing price moves instead of collecting carry.
I still play some EM currencies for the higher rates, but I size way smaller since they’re riskier.
You might want to trade more around central bank meetings - that’s where all the real action is these days.
Yeah, carry trades died when rates hit zero. Had to completely change my strategy around 2019 - couldn’t pretend it was temporary anymore.
Now I focus on momentum and breakouts instead of chasing interest spreads. AUD/USD and NZD/USD still work when their banks move opposite the Fed.
Crypto? I keep it under 5% max. Too volatile for steady income - better to trade the major pairs and ride the swings.
You trading commodity currencies? CAD and NOK can be solid when oil’s moving.
Zero rates killed my setup around 2020. I was making decent money on USD/JPY and EUR/CHF carries until that disappeared.
Switched to volatility breakouts and trading news releases. EUR/USD and GBP/USD move well when data surprises hit.
Started using limit orders instead of market entries too. Better fills matter more when you can’t count on overnight interest.
Tried crypto but it’s too correlated with stocks now. Bitcoin dumps when SPY dumps - not much of a hedge anymore.
Rate differential trading is over now. I switched to technical trading when rates hit zero. Focus on volatility trades instead of carry trades. Look for range breaks and central bank surprises - avoid overnight positions. Keep crypto exposure low for stable returns. Its correlation with risk assets limits real diversification.