Suppose You Have a Rule to Buy Euros Once the 50-Day

question 182

Multiple Choice

Suppose you have a rule to buy euros once the 50-day average of euros crosses the 200-day average over a period of five minutes and to exit otherwise.What would happen if the euro rate crosses the 50-day average and lasts in the 200-day average for a period of three minutes?

• A) The trade is executed successfully.
• B) The trade is exited.
• C) The automated system takes no action.
• D) An alert is broadcast for further instructions.

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Definitions:

Mean

A statistical measure representing the average value of a set of numbers.

Distribution

The process by which goods or services are spread or made available to consumers or through which phenomenon are spread across a population or area.

Misleading

Information or statements that lead to incorrect impressions, interpretations, or understanding, often intentionally.

Skewed Distribution

A distribution of data where most values are on one side of the mean, resulting in a curve that is not symmetrical.