We all know that rollover can be a trading cost but what about using it to profit?

For instance there are currencies against the JPY will attract a positive rollover for the foreseeable future.

A quick look at FXCM rates shows

AUD/JPY - Rollover = $1.04 (annualized 3.8%)

Now because Rollover is calculated on the face value of a position, $10 000 per $100 invested on a 100:1 basis, the return on equity is 100x higher. In this case annualized 380%.

What this is describing the carry trade.

I have been thinking about the merits of using such a strategy in Zorro.

One advantage is longer holding periods which would reduce the effect of slippage and commissions on equity compared to a more frequent trading.

What do you think?

Do you mean something like this?

FX Carry Trade Strategy

Yes.

I have used one of my accounts to carry trade more or less so far for the past 10 months.

https://www.myfxbook.com/members/Sheffield/carrytrades/1396115

Carry earned was about $1000.