In this study, the profitability of technical analysis and Bayesian Statistics in trading EUR/USD, GBP/USD, USD/JPY exchange rates are examined. For purpose, seven thousand eight hundred forty-six rules generated, their is assessed through a data snooping procedure. Then, most promising combined with Naïve Bayes, Relevance Vector Machine, Dynamic Model Averaging, Selection regularized Neural Ne...

In this chapter, the authors use an Agent-Based Modeling (ABM) approach to model trading behavior in the Foreign Exchange (FX) market. They establish statistical properties (stylized facts) of the traders’ trading behavior in the FX market using a high-frequency dataset of anonymised OANDA individual traders’ historical transactions on an account level spanning 2.25 years. Using the identified ...

The aim of this project is to investigate the design and implementation of high frequency trading rules using genetic programming and swarm intelligence. The approach taken was to design, build and test two different versions of our basic approach: a genetic program which digs out relevant trading signal information from tick level Foreign Exchange market data and an adaption of this genetic pr...

(2013) Forecasting foreign exchange rates with adaptive neural networks using radial basis functions and particle swarm optimization. The content must not be changed in any way or reproduced in any format or medium without the formal permission of the copyright holder(s) Forecasting foreign exchange rates with adaptive neural networks using radial-basis functions and particle swarm optimization...

This research investigates the ability of genetic programming (GP) to build profitable trading strategies for the Foreign Exchange Market (FX) of three major currency pairs (EURUSD, USDCHF and EURCHF) using one hour prices from 2008 to 2011. We recognize that such environments are likely to be non-stationary. Thus, we do not require a single training partition to capture all likely future behav...

Hedging foreign currency risk is a central task for treasuries of multinational corporations. Traditionally, it has strongly relied on voice-based broking. With the advent of Internet technology, online platforms for foreign exchange trading emerged offering corporations a single point of access to the liquidity of a global market. However, online marketplaces only become truly valuable if seam...

Weconduct an extensive examination of the profitability of technical analysis in ten emerging foreign exchange markets. Studying 25,988 trading strategies for emerging foreign exchangemarkets, we find that the best rules can sometimes generate an annualmean excess return of more than 30%. Based on standard tests, we find hundreds to thousands of seemingly significant profitable strategies. Howe...

this study investigates the effects of  macroeconomic variables and their role in development of foreign exchange market. the foreign exchange market is the mechanism by which a person of firm transfers purchasing power form one country to another, obtains or provides credit for international trade transactions, and minimizes exposure to foreign exchange risk. the foreign exchange transaction i...

Currency economists are puzzled by the relatively high frequency of massive, abrupt exchange-rate changes, such as dollar-yen’s 11 percent decline on October 7, 1998. This paper provides evidence that such moves may be partly caused by stop-loss orders, which create rapid, self-reinforcing exchange rate movements or "price cascades." The central hypothesis, which is taken from prominent theoret...