The passport option

REAL-LIFE PROBLEMS, INNOVATIVE SOLUTIONS

BACKGROUND

Many FX hedge funds and proprietary traders employ technical trading strategies that may be broadly classified as 'trend-following'. Over the past decade as electronic platforms have become widely available, the FX markets have seen a deluge of trading models used by traders, large and small, that have their basis in methods overtly designated as directional or trend-following. These models make use of a varied range of techniques such as the trend lines drawn by chartists and the many

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