Forex Update, Maybe a Small Strategy Tweak

My Forex accounts are quietly chugging along, and that is why I haven't written much about them lately. They're quiet... but not too quiet. This is by design: the method of trading I use is meant to be rather dull. It's profitable, but there is no cliffhanger excitement to be found in it.

I have two accounts running right now, my primary Forex account and an account containing funds borrowed from Discover Bank at 1.9% interest for ten months, the profits from which will become new permanent capital in my primary account. This is the account I have on my mind.

Normally, if I were starting from a "blank slate" (no open positions), I would buy or sell the currency pair that would yield me the most interest using 10% of the balance of the account, and in subsequent days scale into the position with earned interest to keep in in-play amount at 10% of the balance.

This is all well and good for something like my primary account since it is intended to go on "forever." In the Discover Bank funded account, however, I do need to pull the principal out when the 1.9% offer comes to an end, meaning all positions will have to be closed out. Sometimes it can be a very long time before all positions collectively move into the black and can be closed at a profit, which could create some difficulties when the ten months of the low interest rate offer are running out, so I came up with this idea:

Instead of initiating the account with a 10% buy or sell of the best yielding currency pair, I'll buy into that pair at a rate of 1% to 2% daily until the account reaches 10% of the balance in play. My thinking is that this would provide even better cost averaging. This would help to keep the action closer to the break-even point, even if only in the beginning, which may make for shorter timespans between account-wide capital gain events.

I think a capital gain event is in store for this account soon that will close all positions, and if so I plan to give this idea a try to see what it is like. It's not something I'm going to bother modeling first because it's actually a bit safer than just buying or selling 10% to start with like I have been.