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

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_ost - Ostatní články v recenzovaných periodicích

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2020

Kód důvěrnosti údajů

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

Název periodika

Balkans Journal of Emerging Trends in Social Sciences

ISSN

2620-164X

e-ISSN

—

Svazek periodika

3

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

RS - Srbská republika

Počet stran výsledku

6

Strana od-do

34-39

Kód UT WoS článku

—

EID výsledku v databázi Scopus

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