Currency trading simulation Research Paper Example | Topics and Well Written Essays - 750 words

Currency transaction simulation - Research report ExampleOANDA reflects the market ideal market condition which may not be true conditions. The pie charts in the OANDA which shows real time changes in the currency pair using moving averages. The user can theater of operations the market and develop their trading strategy which will determine when to buy and when to divvy up at a profit. Generally, when the spot crosses under the moving average,a sell signal appears because the technical analysis shows that the price will drop. A buy signal appeard when the spot crosses over the moving average because the price will raise. Market capriciousness tends to indicate rate reversal hence an important factor to be considered.I used twain moving average on the same pie charts, the faster moving average is based on 25 days of data temporary hookup the slower moving average is calculated from 10 days of data. A buy signal appears when the faster moving average crosses above the slow movi ng average, and a sell signal appears when the faster moving average crosses below the slower moving average (OANDA Tutorial). My initial trading plan was to use reversal point by waiting for the fast moving average convergence above the slower moving average, then buy 50 currency units and hold the for a while to see if the market price will go up or not.My initial didnt invent emerge because the prices didnt rise, thus I couldnt get a profit. I decided to ray my portfolio to maximize my returns and minimize my risk in the money market. The moving average, however, had little movement and thus I was not able to able to buy and sell at a profit. Changing my strategies to diversification of portfolio worked knocked out(p) because none of the moving averages crossed each other. Market volatility also didnt work out so I decided to diversify my points. My strategies yielded returns, but I didnt maximize it.The market fluctuates all second and making decisions is very