Graduate School of Business
Doctor of Business Administration (DBA)
Rol D. Erickson
Alternative Trading, Bollinger Bands, Currency Trading, Intraday
Business | Finance and Financial Management
Vaughters, Brock, "An Examination of Alternative Trading Techniques Using Intraday EUR/USD Currency Prices" (2018). Doctoral Dissertations and Projects. 1864.
Global financial institutions provide a mechanism for multinational corporations to hedge against exchange rate risk via currency futures contracts and spot exchange rates. Currency managers working at these global financial institutions overseeing EUR/USD spot currency traders lack adequate data to determine if alternative trading tools could increase net gains for their respective firms. The purpose of this quantitative study is to examine the net gains from alternative trading techniques that can be utilized by currency managers working for international banks and hedge funds when trading the EUR/USD currency on an intraday basis. A buy and hold strategy, sell and hold strategy, and a Bollinger Band strategy was applied to tick level sample data gathered from 2009 to 2016 to determine net gains from each strategy. The results of an ANOVA test indicate that there is a statistically significant difference, however the Bollinger Band strategy produced an overall net loss from trading. The findings suggest that using an alternative trading strategy, Bollinger Bands, on an intraday basis does not increase net gains from trading activity.