So that you would like anecdote to analysis? The market makers must love you. How many trials could be sufficient to convince? How the OP made cash (13 percent) is hardly surprising given the recent turmoil in FX markets. The GBP/USD rate did proceed out of $2 to $1.75, and it can be a gigantic 2500 point change, but it doesn't happen very often.Originally Posted by ;
Anyway, I also tested the plan using two live demo reports. It lost money, as predicted by my investigation. I also experienced slippage and failure to place/close out the trades simultaneously. Now I think I could solve that to a certain extent with software, since I could easily set the FX leg with the API to various agents. However, no SB firm has an API so far as I understand. So you have to manually set 1 leg and then reach on the auto-trade for the other. It is not too bad if the market is silent, but if it's, then you likely aren't going to earn any money.
Note that putting lots of successive trades performs worse than putting one transaction and letting it ride to the end of a trend. The profits only collect as the two currencies diverge in their starting position, so the profits from 300 points to 400 are much better than from 0 to 100. This poses the question of when to close out the trades.