Smart & Cool FX I

With the Smart & Cool FX strategy, you are likely to hold on to trading positions over a longer period of time.

To do this, we combine several strategies for long-term forex trading. From a technical analysis perspective, the strategy looks at the 200-day moving average in forex trading. This represents the average closing price of the last 200 business days of a particular currency pair. This indicator is used to identify and analyse the dynamics of long-term trends.

In addition, the strategy compares the relative real interest rates of different currencies. The annual inflation rate is subtracted from the central bank’s key interest rate for a specific currency. The basic idea behind this is that currencies with relatively higher real interest rates often tend to appreciate against their peers.