FOREX Trading Strategy Optimization

Galeshchuk, Svitlana; Mukherjee, Sumitra

doi:10.1007/978-3-319-60882-2_9

Cited by 4 publications

(3 citation statements)

References 20 publications

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“…Optimization technique-based systems provide higher ROIs [52] and can be more accurate when combined with powerful techniques-the genetic algorithm, neural networks, regression, etc. [53,55,57]. However, these techniques are not suitable for all currency pairs and may provide better results for only some randomly selected currencies that go well with the models, as we can see in paper [52].…”

Section: Optimization Techniquesmentioning

confidence: 99%

“…For FOREX trading strategy optimization, a genetic algorithm was employed by the authors of the paper [55] to evolve a different set of profitable trading rules inspired from weighted moving average method. They used a time series with 4147 observations within a range of 2001-2015 and they used the close prices of four currency pairs.…”

Section: Optimization Techniquesmentioning

confidence: 99%

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A Review on Recent Advancements in FOREX Currency Prediction

Islam¹,

Hossain

Rahman³

et al. 2020

Algorithms

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In recent years, the foreign exchange (FOREX) market has attracted quite a lot of scrutiny from researchers all over the world. Due to its vulnerable characteristics, different types of research have been conducted to accomplish the task of predicting future FOREX currency prices accurately. In this research, we present a comprehensive review of the recent advancements of FOREX currency prediction approaches. Besides, we provide some information about the FOREX market and cryptocurrency market. We wanted to analyze the most recent works in this field and therefore considered only those papers which were published from 2017 to 2019. We used a keyword-based searching technique to filter out popular and relevant research. Moreover, we have applied a selection algorithm to determine which papers to include in this review. Based on our selection criteria, we have reviewed 39 research articles that were published on “Elsevier”, “Springer”, and “IEEE Xplore” that predicted future FOREX prices within the stipulated time. Our research shows that in recent years, researchers have been interested mostly in neural networks models, pattern-based approaches, and optimization techniques. Our review also shows that many deep learning algorithms, such as gated recurrent unit (GRU) and long short term memory (LSTM), have been fully explored and show huge potential in time series prediction.

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Section: Optimization Techniquesmentioning

confidence: 99%

Section: Optimization Techniquesmentioning

confidence: 99%

A Review on Recent Advancements in FOREX Currency Prediction

Islam¹,

Hossain

Rahman³

et al. 2020

Algorithms

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show abstract

“…Studi pustaka merupakan dasar untuk memahami tentang berbagai aspek yang terkait dengan perdagangan forex dan penggunaan robot trading. Penelitian (Galeshchuk, 2018) tentang strategi https://doi.org/10.24912/jmstkik.v7i2.29089 pertukaran mata uang memberikan wawasan tentang strategi transaksi yang digunakan dalam pasar forex. Sementara itu, penelitian oleh (Arora & Khanduja, 2018) dan (Yang & Wang, 2020) membahas pengembangan dan evaluasi sistem perdagangan otomatis berbasis kecerdasan buatan, yang secara luas dikenal sebagai robot trading.…”

Section: Hasil Dan Pembahasan Studi Pustakaunclassified

Desain Algoritma Dan Implementasi Robot Trading Forex Hedging Dan Averaging

Fat,

Utama,

Candra

et al. 2023

JMSTKIK

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This study aims to design and evaluate the performance of a forex trading robot that implements hedging and averaging methods in the forex market. With the combination of these methods, the robot is expected to generate significant profits while managing risks effectively. Triangular hedging method is utilized to protect capital and reduce risk against market fluctuations, while averaging method is employed to enhance profit potential. This research is expected to provide a better understanding of how the strategies employed can effectively manage risk and increase profitability. The test results show that the forex trading robot implementing hedging and averaging methods managed to achieve a significant increase in profit accumulation, with a growth rate of 175.58% during the testing period, from June 9 to September 20, 2023. Although there was a daily fluctuation of 0.50%, the robot successfully achieved a monthly growth rate of 42.42%. This is also reflected in the increase in account balance from 100 USD to 275.58 USD and a total of 865 pips gained. Despite a drawdown of 61.42%, this did not hinder the robot's performance in consistently generating profits. The application of hedging and averaging methods in forex trading robots can be an effective strategy in optimizing transaction performance in the complex and dynamic forex market. By utilizing this combination of strategies, trading robots have the potential to be utilized by forex market participants in achieving their financial transaction goals. Nevertheless, this research also highlights the importance of continuous monitoring and evaluation of trading robot performance to identify and mitigate potential risks and improve long-term performance consistency. Keywords: averaging; forex; trading robot; triangular hedging Abstrak Penelitian ini bertujuan untuk merancang dan mengevaluasi kinerja robot trading forex yang menerapkan metode hedging dan averaging di pasar forex. Dengan kombinasi metode tersebut, robot diharapkan dapat menghasilkan keuntungan signifikan dengan pengelolaan risiko yang baik. Metode triangular hedging digunakan untuk melindungi modal dan mengurangi risiko terhadap fluktuasi pasar, sedangkan metode averaging dimanfaatkan untuk meningkatkan potensi profitabilitas. Penelitian ini diharapkan dapat memberikan pemahaman yang lebih baik tentang bagaimana strategi yang digunakan dapat secara efektif melakukan pengelolaan risiko dan meningkatkan profitabilitas. Hasil pengujian menunjukkan bahwa robot trading forex yang menerapkan metode hedging dan averaging mampu mencapai peningkatan signifikan dalam akumulasi keuntungan, dengan pertumbuhan sebesar 175.58% selama periode pengujian, yaitu dari 9 Juni-20 September 2023. Meski pun terdapat fluktuasi harian sebesar 0.50%, namun secara bulanan robot trading berhasil mencapai pertumbuhan sebesar 42.42%. Hal ini juga tercermin dari peningkatan saldo akun dari 100 USD menjadi 275.58 USD serta total pips yang diperoleh adalah sebesar 865 pips. Meski pun drawdown mencapai 61.42%, namun hal ini tidak menghambat kinerja robot trading dalam menghasilkan keuntungan secara konsisten. Aplikasi metode hedging dan averaging pada robot trading forex dapat menjadi strategi yang efektif dalam mengoptimalkan kinerja transaksi di pasar forex yang kompleks dan dinamis. Dengan memanfaatkan kombinasi strategi ini, robot trading memiliki potensi untuk dimanfaatkan oleh para pelaku pasar forex dalam mencapai tujuan transaksi keuangannya. Meski pun demikian, penelitian ini juga menyoroti pentingnya pemantauan dan evaluasi terus-menerus terhadap kinerja robot trading untuk mengidentifikasi dan mengatasi potensi risiko serta meningkatkan konsistensi kinerja dalam jangka panjang.

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Predict Exchange Rate by Adopting Maximum Likelihood Estimation (MLE) Method Approach

Khoa,

Huynh

2024

Smart Innovation, Systems and Technologies

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FOREX Trading Strategy Optimization

Cited by 4 publications

References 20 publications

A Review on Recent Advancements in FOREX Currency Prediction

A Review on Recent Advancements in FOREX Currency Prediction

Desain Algoritma Dan Implementasi Robot Trading Forex Hedging Dan Averaging

Predict Exchange Rate by Adopting Maximum Likelihood Estimation (MLE) Method Approach

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