Traders' Roundtable

[quote="Ghostrider"]Carry is important, but is not more important than being long/short the strongest/weakest horse out of the gate. I find many times the large carry trade agrees with the best trade.

Self-reinforcing trend perhaps? Would be interesting to backtest, no?

Let's assume that you are following a trend in the Pound. You have a choice of trading your Pound position against $, Euro, Yen, Swiss, etc. Your preference, from a carry perspective, would be to trade long Pound vs. Yen, since that is where you would get the largest carry differential, right?

I ...