8.2

Carry Trade

PYTHON PLUGIN Fx Carry

Description

Strategy 8.2: FX carry trade on forward premium / discount

Strategy Logic

Strategy 8.2: FX Carry Trade based on forward premium/discount. Forward rate F = S * (1 + rd) / (1 + rf). When rf > rd the foreign currency trades at a forward discount and carry is positive -- buy. When rf < rd the carry is negative -- sell. Expects DataFrames with columns 'close' (spot), 'rf' (foreign rate), 'rd' (domestic rate). Falls back to forward/spot comparison when 'forward' column is available.

Parameters

Parameter Default Value Type
carry_threshold 0.001 float

Risk Configuration

Risk Parameter Value
Max Position Pct 10.0%
Stop Loss Pct 4.0%
Take Profit Pct 8.0%
Max Drawdown Pct 15.0%