# Carry Trade Strategy AI Agent Connect

> Deterministic forex carry trade strategy using interest rate differentials and volatility filters.

## Overview
- **Category:** finance
- **Price:** Free
- **Endpoint:** https://edge.vinkius.com/vk_preview_VbAsrlzgKmbgWtffu8bFumW1Tm3rG0HA79lnpDW6/ai-agent-connect
- **Tags:** forex, carry-trade, interest-rates, trading-strategy, volatility

## Description

This MCP server provides tools to execute a deterministic forex carry trade strategy. It identifies trading opportunities by calculating the interest rate differential between currency pairs and filtering for trend confirmation using moving averages. The strategy uses `analyze_carry_signals` to generate BUY, SELL, or HOLD signals, ensuring trades are only entered when the positive carry is not offset by excessive volatility. It also includes `get_pair_metadata` to restrict trading to major pairs and `calculate_volatility_risk` to ensure market fluctuations remain within safe thresholds.

## Tools

### analyze_carry_signals
Generates trading signals (BUY, SELL, HOLD) and calculates carry-related metrics for a given historical price series

### get_pair_metadata
Validates if a specific currency pair is eligible for the carry strategy

### calculate_volatility_risk
Determines if the current market volatility exceeds the allowable risk threshold

## Prompt Examples

**Prompt:** 
```
Analyze the carry signals for EUR/USD with a base rate of 5%, a quote rate of 2%, and these ATR values: [0.005, 0.006, 0.005].
```

**Response:** 
```
The signal for EUR/USD is BUY. The entry price is 1.0850, with a stop-loss at 1.0785 and a take-profit based on trend reversal.
```

**Prompt:** 
```
Is USD/JPY a major pair for this strategy?
```

**Response:** 
```
Yes, USD/JPY is a major pair.
```

**Prompt:** 
```
Check if the current volatility for EUR/USD is acceptable given an ATR of 0.01 and a price of 1.08.
```

**Response:** 
```
The volatility risk is acceptable.
```

## Frequently Asked Questions

**What currency pairs are supported?**
The strategy is restricted to major pairs: EUR/USD, USD/JPY, GBP/USD, and AUD/USD.

**How is the volatility risk assessed?**
Risk is assessed using `calculate_volatility_risk`, which checks if the annualized volatility derived from ATR exceeds 15%.

**What triggers a BUY signal?**
A BUY signal is triggered via `analyze_carry_signals` when the interest rate differential is greater than 2% and the price is above the 50-day Moving Average.