Basic forex strategies

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Contemporary state of the art of financial time series modelling is connected to the Efficient Market Hypothesis according to which “prices fully reflect all available information” and hence future evolutions are unforecastable. In simple terms, EMH states that by predicting the future development we are not able to achieve the profits superior to the profits of the market index when these are adjusted for the risk and transactions costs are deducted. On the other hand, there exist works providing evidences that markets are not efficient. In these works, however, the strategies (or technical trading rules) are demonstrated to provide the extra performance in short term only and then the extra performance vanishes. In the paper we apply moving averages in order to define automated trading system and then analyze its profitability in Czech stock market. The results are statistically tested and statistical inference about the applicability of such an automated trading system in Czech stock market is made. 


Re: Basic forex strategies

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Rolling spot forex is a growing business. The key problem is whether it could be classified as a financial instrument or could be classified as gambling contract. Each legal system has different approach. Nevertheless the legal position of rolling spot forex is unclear. This submission is divided in three parts. First part gives the explanation of forex trading. It shows what is understood under this term. Second part deals with the types of forex trading. This part gives also a brief explanation of each type of forex trading ant main type characteristics. Third part is main part. It deals with the problem of internet forex trading (which is spread around the world) .This part analyzes types of trading platforms. It shows who could be the counterparty in retail forex trade. It tries to find out what rolling spot forex trading means. Key question is, if rolling spot forex contracts fall under MiFID system. And finally deals with the problem of (il)legality of such trading.

Re: Basic forex strategies

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This study compares returns from the traditional buy and hold (B&H) strategy to well-known technical oscillators applied to diverse indices leading the global market (DJI, FTSE, NK225 and TA100) during the period 2007-2012. Our aim was to establish whether technical tools can consistently achieve returns exceeding those of the B&H strategy across various financial markets. We found the relative strength index (RSI) to be the best oscillator, outperforming the DJIA, the FTSE100 and the NK225 for five of the six years examined. The only index that did better than the RSI was TA100, which outperformed all the examined oscillators. In second place was the moving average convergence/divergence (MACD) oscillator, which outperformed the NK225 B&H strategy and came in second for TA100. The results show that during bear markets the RSI and MACD generally produce better gains than the indices, while the opposite occurs during bull markets.


 

Re: Basic forex strategies

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• What is it based on ?Old School Simple Technical Analysis based on EMA (Exponential Moving Average) with use of Stochastic oscillator and RSI(Relative Strange index) as an Entry and alternative Exit signal . And dynamic Stop Loss and Profit Target based on percentage of ADR (Average Daily Range) .• Why do i trade simple strategy ?Complex strategies can easily draw in traders since it is somewhat logical that the more information we factor into a system, the more reliable it will be. Yet, the market does not always reward logic and when it does , it may not do it in the trader's timeframe. Remember, the market can be wrong a lot longer than the trader can afford to be right !!


Re: Basic forex strategies

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Exchange-traded funds are remarkably sophisticated investment vehicles. You’ll get the feel for them as we go along. But any kind of complete description can’t be attempted until we nail down a number of other things. We’re going to visit a four-story house. In the basement is finance, which lies at the foundation of any investment program. You probably don’t spend much time in the basement of your house, and we won’t spend much time with finance either.

Then, in successive floors, come the following:
? Stocks and bonds
? Indexes
? Mutual funds
? Index funds
? In the penthouse, exchange-traded funds

Re: Basic forex strategies

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Integrated Trend Analysis is an attempt to study and analysis the diverse forces which affect the price of a security with the help of Triple Trend Oscillator (TTO). TTO is a trend following oscillator devised to identify the exact technical strength of a stock or indices over multiple timeframes and can also be used as a trend and momentum indicator. It incorporates trend oscillators which mimic the trend momentum across three timeframes, plotting them simultaneously, thus giving an overall view of the trend position.

There are numerous possibilities of using TTO alongside and in conjunction with the Elliott Wave theory. TTO can be used in all time frames for equities, indices, commodities and forex for short terms, positional and swing trades as well as for long term investing.

Re: Basic forex strategies

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Technical trading rules are extensively used by foreign exchange (forex) traders. Despite the essential need to the forex diversification, it is not addressed by academic researches to generate forex portfolio trading systems based on technical indices. This paper aims to develop an interpretable and accurate Takagi-Sugeno-Kang (TSK) system for forex portfolio trading. The system uses technical indices of the forex rates and delivers the preferred portfolio composition among multiple foreign currencies. The proposed model considers the transaction cost and trading risk, which are the two important factors in the high frequency trading strategies. The proposed model was implemented to develop a trading system for portfolio trading among the five of the most traded currencies in the Tehran forex market. Four experiments were designed to examine the performance of the proposed model in different market trends, in terms of the portfolio return and risk adjusted return.According to the experimental results, the proposed model is able to extract profitable portfolio trading systems in this market, especially when the market is in the downward trend.

Re: Basic forex strategies

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Rolling spot forex is a growing business. The key problem is whether it could be classified as a financial instrument or could be classified as gambling contract. Each legal system has different approach. Nevertheless the legal position of rolling spot forex is unclear. This submission is divided in three parts. First part gives the explanation of forex trading. It shows what is understood under this term. Second part deals with the types of forex trading. This part gives also a brief explanation of each type of forex trading ant main type characteristics. Third part is main part. It deals with the problem of internet forex trading (which is spread around the world) .This part analyzes types of trading platforms. It shows who could be the counterparty in retail forex trade. It tries to find out what rolling spot forex trading means. Key question is, if rolling spot forex contracts fall under MiFID system. And finally deals with the problem of (il)legality of such trading.


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