Trading Style Analysis

Abstract

This article offers an insight into the trading styles utilized within the currency industry. It questions whether trend-following techniques still remain the dominant trading style for currency commodity trading advisors (CTAs) and the extent to which the perceived use of fundamental strategies by currency overlay managers can be justified. The results show that over the period in question trend-following was the dominant trading style of currency CTAs. However, the results also show that a surprisingly high proportion of currency overlay managers were also found to be using this technique.