Random Strategy Versus Technical Analysis Strategy: The Case of EUR/USD Intraday Trading

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F20%3A00115128" target="_blank" >RIV/00216224:14560/20:00115128 - isvavai.cz</a>

Result on the web

<a href="https://www.udekom.org.rs/balkansjetss20203134-39.html" target="_blank" >https://www.udekom.org.rs/balkansjetss20203134-39.html</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.31410/Balkans.JETSS.2020.3.1.34-39" target="_blank" >10.31410/Balkans.JETSS.2020.3.1.34-39</a>

Result language

angličtina

Original language name

Random Strategy Versus Technical Analysis Strategy: The Case of EUR/USD Intraday Trading

Original language description

This paper provides a comparison between the strategy based on technical analysis and the strategy based on random trading on a highly liquid EUR/USD foreign exchange market. We analyze three years of data, and in every intraday trading session, only a single position will be opened. Technical analysis strategy uses essential indicators such as Bollinger Bands, relative strength index (RSI), moving averages (MA) and another. Every trading position will have the risk-reward ratio (RRR) 3 to 1. In addition, another trading positions on the EUR/USD currency pair will be opened at the same time each day, without technical analysis. The time of entry into position will be indicated by past high liquidity on a given currency pair at a given time with a similar risk-reward ratio (RRR) 3 to 1. We want to answer the question whether it is preferable to use the technical analysis indicators or to open a trading position randomly in intraday trading. In other words, this article aims to compare the strategy of technical analysis and the random strategy in intraday trading concerning the profitability of these trades. On the basis of our preliminary results, we expect that the random strategy will show us higher profitability or lower loss ability than the strategies based on the technical analysis indicators in the observed period.

Czech name

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Czech description

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Type

J_ost - Miscellaneous article in a specialist periodical

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2020

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Balkans Journal of Emerging Trends in Social Sciences

ISSN

2620-164X

e-ISSN

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Volume of the periodical

3

Issue of the periodical within the volume

1

Country of publishing house

RS - THE REPUBLIC OF SERBIA

Number of pages

6

Pages from-to

34-39

UT code for WoS article

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EID of the result in the Scopus database

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