Project Using the Web Site Database

question 13

Essay

Project using the Web site database:
Take a time series of monthly exchange rates of a major currency relative to the U.S. dollar. Try to derive a technical analysis that would yield a profitable trading strategy over the period studied. For example, you could simulate various moving average strategies discussed in the text or simulate various filter strategies. Apply the strategy that seems most profitable for the previous exchange rate to other currencies. Perform the same exercise for nondollar exchange rates (for example, for the CHF/£ rate). What do you conclude?

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Definitions:

Erratic

Describing something that is unpredictable or irregular in pattern, movement, or behavior.

Biological Factors

Elements within an organism's biology that influence its behavior, health, and development, including genetics, brain chemistry, and hormone levels.

Unpredictable Environment

A setting or situation where changes and occurrences are random or difficult to anticipate, often causing stress or anxiety.

Mental Disorder

Any behavior or emotional state that causes an individual great suffering, is self-destructive, seriously impairs the person’s ability to work or get along with others, or makes a person unable to control the impulse to endanger others.