Carry Trading on MyFundedFutures — Rules & Compatibility

Rule Compatibility Checklist

Picture this scenario: You've identified a strong interest rate differential between the Japanese yen and Australian dollar, and you want to execute a carry trade on your MyFundedFutures challenge account. You analyze the fundamentals, plan your position sizing, and prepare for a multi-week hold — but then reality hits. Come Friday afternoon, you're forced to close your position regardless of market conditions, fundamentally breaking the carry trading model. This scenario illustrates the core challenge of implementing carry trading strategies on MyFundedFutures. While the firm doesn't impose many of the restrictive rules that plague other prop firms, one critical limitation makes traditional carry trading nearly impossible: the prohibition on weekend holding. The weekend holding restriction is particularly damaging to carry trading because this strategy's profitability relies heavily on time. Carry trades generate profit through interest rate differentials that accrue daily, including weekends when traditional forex markets are closed. By forcing you to close positions every Friday, MyFundedFutures eliminates roughly 29% of your potential carry income (weekends account for 2 out of 7 days). More importantly, the constant opening and closing of positions exposes you to unnecessary spread costs and market timing risk. Adding to this challenge is MyFundedFutures' instrument limitation. The firm doesn't offer forex trading, which traditionally provides the most liquid and accessible carry trading opportunities. Without access to major currency pairs like AUD/JPY, NZD/JPY, or EUR/CHF, you'll need to explore alternative approaches using the available indices and commodities. However, MyFundedFutures does offer some structural advantages for modified carry trading approaches. The absence of a consistency rule means you won't be penalized for the natural clustering of carry trades. When interest rate differentials align favorably, you can concentrate your trading activity without worrying about artificial distribution requirements. This flexibility is crucial since carry opportunities often emerge in waves based on central bank cycles. The 80% profit split also works in your favor for any successful positioning. Since carry trades aim for steady, moderate returns over time, the generous payout structure ensures you retain most of your profits. Combined with no minimum trading days requirement, you have the freedom to wait for optimal setups without pressure to trade frequently. To adapt carry trading principles to MyFundedFutures' constraints, consider these modified approaches. First, focus on intraweek momentum trades that capture carry-like themes. For example, if interest rate differentials favor risk-on sentiment, you might hold long positions in equity indices from Monday through Friday, closing before the weekend gap risk. Second, explore commodity-based carry strategies. Some commodities exhibit carry-like characteristics through storage costs and financing rates. Energy futures, for instance, can display contango or backwardation patterns that create systematic profit opportunities over shorter timeframes. Third, implement a 'synthetic weekly carry' approach. Instead of holding true carry positions, you can repeatedly enter similar directional trades each week, effectively creating a series of short-term positions that mimic longer-term carry exposure. This requires more active management but can capture similar market themes. Position sizing becomes critical given these constraints. Since you're essentially running a series of shorter-term trades rather than true long-term positions, you'll want to size more conservatively than traditional carry trades. Consider using 1-2% risk per trade rather than the 3-5% that might be appropriate for genuine multi-month positions. Pay special attention to Friday closing procedures. Develop a systematic approach for position closure that accounts for potential slippage and market conditions. Avoid holding through major news events that occur near Friday close, as you won't have the luxury of riding out temporary adverse moves. Monitor central bank meeting schedules carefully. Since you can't hold through weekends, any major monetary policy announcements or economic data releases occurring outside your trading window could significantly impact your strategy's effectiveness. While MyFundedFutures' rule set doesn't completely prohibit carry-inspired strategies, it does require substantial adaptation. The weekend holding restriction transforms what should be a patient, time-based strategy into something more resembling swing trading with carry themes. This fundamental change reduces the strategy's theoretical edge and increases its operational complexity. For traders committed to carry-style approaches, MyFundedFutures can work as a learning platform or for testing modified strategies, but it's not optimal for traditional carry trading implementation.

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