Strategy library

Four classic approaches to trading currency swings, each tested against years of real daily exchange rates. Change the pair, the period and the settings to see how each one would have behaved. Nothing here is a recommendation; it is a way to understand how these methods work, when they struggle, and how big the swings really are.

1. Trend followingMoving-average crossoverFollow a trend once a fast average crosses a slow one, and reverse when it crosses back.Tested on EUR/USD
2. Mean reversionRange trading with Bollinger BandsFade stretched moves outside a two-standard-deviation band and exit at the average.Tested on EUR/GBP
3. MomentumChannel breakoutBuy a 20-day high, sell a 20-day low, and trail the exit with a 10-day channel.Tested on USD/JPY
4. Volatility explorerSwing oddsSee how often a pair really moves 0.5, 1 or 2 percent within a week or a month.Tested on GBP/USD