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Singapore R Capital Management Currency Trading Strategy

Author: YunBo
Tutor: WuXinRu
School: East China Normal University
Course: Business Administration
Keywords: Psychological Chaos Theory Risk Management Trend-following Investment Strategy
CLC: F833.39
Type: Master's thesis
Year: 2011
Downloads: 34
Quote: 0
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Abstract


China's financial market is gradually opening up process, the internationalization of the RMB is also a major trend can be confirmed in the future. Although the foreign exchange market is the largest financial market in the world, but because of a temporary regulation, indirectly led to a serious shortage of talent in this area, the future is bound to face a lot of foreign exchange management talent shortage. Our policy is to vigorously develop foreign exchange professionals, in order to further liberalize the financial markets, international convergence to prepare. Currency analysts, strategists, these professional traders after the financial tsunami will undoubtedly become a sunrise career. Whether the financial sector, foreign enterprises, or related financial information services companies are craving a high level of foreign talent. Or even \However, to guard against exchange rate risk by predicting even for profit, is almost the hardest things in this world, one of a variety of cutting-edge theory applied here is not surprising: although originated in physics, chaos theory, to explain natural phenomena, but because of its relatively linear model, it can be given to human behavior explained more natural condition, especially financial transactions behind the market, namely: the seemingly random phenomenon, there is a more for advanced order. Currently, many international funds invest in foreign exchange management concept has gradually moved from to predict exchange rate based investment strategy closely aligned with the market trend of turning to follow the strategy. And systematic, model-based trading strategies, each of this era can be said that professional investors have the necessary tools to improve trading performance. In this paper, the Singapore R Capital Management systematic currency trading strategies as the research object, using historical data back-tested methods, in a certain stage of their winning, risk-free rate, expected value, the exposure position analysis to identify its policy design problems exist, implementation issues and even the underlying problem. To solve these problems, in the absorption of the original strategy based on the merits, in order to better follow the trend, the introduction of the chaos, fractal and mental structure, etc. theoretical research, to create a new model of complex strategies: first through the resulting changes in exchange rates driven factors, psychological factors, behavioral factors were analyzed step by step, select the appropriate direction of the currency pair and positions, followed by quantitative risk management program based on a reasonable position to determine unit, select a suitable location to establish long-term approach positions, according to Guppy composite moving average (GMMA) confirm the trend, then the Bollinger Bands (Bollinger Bands) to set the initial stop, became profitable after, according to the band change positions constantly adjusted to increase or decrease, the \earnings, price earnings below the chase ended open appearance. The research projects starting from the actual transaction, for the financial sector, small and medium sized institutional investors, foreign enterprises and related financial advisory services to companies to establish their own currency trading strategies have a certain significance.

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