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The profitability of chartist trading rules on foreign exchange markets is still under debate. Since simple technical trading rules may not adequately capture the complex phenomenon of chartist trading, this paper focuses on the prominent head-and-shoulder pattern as a representative trading rule which incorporates various „technical“ ideas such as smoothed trends, trend reversal, resistance le...

The author shows how to compute correlation coefficients in an ndimensional geometric Brownian motion model for foreign exchange rates, interprets the result geometrically and applies it to eliminate correlation risk when trading multi-asset options

This paper investigates the impact of speculative trading on foreign currency markets. A review of economic literature reveals that there is still no agreement to whether speculators amplify or tame fluctuations of exchange rates. Relevant system dynamics literature suggests that trading by speculators contributes to the formation of price bubbles. However, very few system dynamics papers exist...