Forex Arbitrage Strategies
Forex arbitrage may sound complex, but it’s actually an old and highly profitable investment method. At its core, it’s about spotting inefficiencies in the financial system—buying an asset at a lower price in one place and selling it at a higher price in another. That’s essentially what forex arbitrage is: identifying tiny discrepancies in currency…
A Detailed Explanation of the Aroon Indicator
The Aroon Indicator, developed by Tushar Chande in the 1990s, is a technical analysis tool designed to help identify changes in market trends. Specifically, it allows traders to observe potential future price movements and detect emerging trends in asset prices. The indicator measures the time elapsed between highs and lows in price action. Its core…
Parabolic SAR Indicator Explained
The Parabolic SAR (Stop and Reverse, or SAR for short) is a widely used technical analysis tool among traders and analysts. It helps identify potential trend reversal points and provides guidance on when to enter or exit trades. Especially useful in trend-following strategies, mastering the mechanics and applications of SAR can enhance your ability to…
Classic Quantitative Strategies in the Forex Market
The foreign exchange (forex) market attracts a large number of traders due to its high liquidity and 24-hour trading availability. Quantitative trading strategies are just as popular in forex as in other markets. Below are three classic forex trading strategies that can be implemented in quantitative systems. 1. Momentum Trading Strategy The momentum strategy is…
Quantitative Practice: In-Depth Guide to the KDJ Indicator
The KDJ indicator, also known as the Stochastic Oscillator, is a momentum-based technical indicator that measures the relationship between a stock’s closing price and its price range (the highest and lowest prices) over a certain period. It consists of three lines: the fast line K, the slow line D, and the dynamic line J. This…
Quantitative Practice: In-Depth Explanation of the RSI Indicator
The RSI (Relative Strength Index) is a momentum oscillator used in technical analysis, first introduced by J. Welles Wilder in 1978. RSI measures the speed and magnitude of price movements by comparing the average gains and losses over a specific period. It is commonly used to determine whether an asset is overbought or oversold, helping…
Swing Trading Strategy
Swing trading is a medium-term trading strategy that differs from intraday trading by allowing positions to be held for several days, weeks, or even months. Traders use this approach to capture intermediate market trends, aiming to enter and exit trades at optimal points during both upward and downward price swings. Strategy Principles and Use of…
George Soros Trend-Following Strategy
George Soros is a renowned investor and philanthropist, widely known for his success in financial markets and his extensive philanthropic work. He gained prominence for applying a form of trend-following strategy that contributed significantly to his reputation as a key figure in the investment world. Soros’s trend-following strategy is rooted in his unique theoretical perspective—that…
Grid Trading Strategy
Grid trading originated in the foreign exchange (forex) markets, though its exact inception date is difficult to determine. It can be traced back to the late 1970s and early 1980s, when the liberalization of currency markets and the rise of electronic trading platforms laid the groundwork for such systematic strategies. Early grid trading techniques were…
Andreas Clenow’s Trend Following Strategy
Among Clenow’s strategies, the Trend Following approach is perhaps the most famous. This strategy focuses on capturing long-term market trends by using technical indicators and trendlines to identify and follow market direction. The goal is to enter the market at the beginning of a trend, ride it until it ends, and profit from its sustained…
