Trend Following Strategy
This strategy takes 28 currency pairs and measures their internal strength and momentum. This is measured in two steps: the first step consists of an indicator for direction and strength and the second step consists of a measure for speed.
Based on those two readings, the strategy then establishes a ranking of the strongest and weakest pairs and buys the top of the list and at the same time sells the pair(s) on the bottom. Should a pair fall from its top position or rise from the bottom, the strategy closes that trade either in profit or in loss. This strategy is always in the market and aims to profit from larger trends.
In practice, when hedging out the currencies involved in the chosen pairs, this system maintains the strongest currencies long and the weakest currencies short in its portfolio and adjusts them daily when necessary.
This strategy is based on daily close data.