Tag Archive: mean reversion

(4) The Main FX Trading Strategies

Carry Trades, Central Bank Interventions, Fundamental Data, mean reversion, Momentum Trades, Overshooting, trend following

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(5.1) FX Theory: The Trade Surplus and the Real Exchange Rate Mean Reversion

George Dorgan explains why currencies of countries with trade surpluses must appreciate over the long-term. Thanks to these surpluses, inflation and costs of companies rise more slowly than in other countries. In Forex a mean reversion does not exist, but only an inflation-adjusted reversion to the mean: a real exchange rate mean reversion or in short the "real mean reversion."

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The Three Main Forex strategies: Trend Following, Mean Reversion and the Carry trade. Is the Carry Trade Dead ?

  Submitted by Mark Chandler, from marctomarkets.com   Net Speculative Positions, FX Outlook, Global Stock Markets, Week October 15    Market participants have to confront a stark asymmetry.  There are many ways to lose money, but there appears to be only three ways to make money. Nearly all strategies seem to come down to some variant …

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