Forex is the biggest and most liquid market in the world with some estimate putting it to be a $3,700bn-a-day volumes. The participation in this market is also quite high the low marigins at 1% attracts everyone from student to most sophisticated Algo traders.
Well my concern is Quant and Technical strategies so lets me update you about that correlation here.
The subject is a paper by St. Louis Branch of the Federal Reserve Bank that the simple Technical Strategies are not working that well in forex markets. Link here.
Not quite surprising given that everyone can read and trade with simple strategies just by reading some books and blogs. And when everyone follows the same path it leads to cliff not to throne.
The paper at the same time mentions that the complex strategies are still profitable.
The complex strategies are however really complex like Neural Network trading, Cross currency pairs, Genetic Algorithms and much more.
Showing posts with label Forex. Show all posts
Showing posts with label Forex. Show all posts
Wednesday, January 19, 2011
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