- author = "Mark Austin and Graham Bates and Michael Dempster and Stacy Williams",
- title = "Adaptive systems for foreign exchange trading",
- journal = "Eclectic",
- year = "2004",
- volume = "18",
- pages = "21--26",
- month = "Autumn",
- keywords = "genetic algorithms, genetic programming",
-
URL = "
http://mahd-pc.jbs.cam.ac.uk/archive/PAPERS/adaptive.pdf",
- size = "6 pages",
-
abstract = "A joint project between academics and bankers has
shown how banks can improve the forecasting performance
of their technical trading systems in foreign exchange
markets. Professor Michael Dempster and Graham Bates,
both of the Centre for Financial Research, Cambridge,
and Dr Mark Austin and Dr Stacy Williams, both of HSBC
Global Markets, outline the results of their
research.
Consistently predicting FX markets has seemed like an impossible goal but recent advances in financial research now suggest it can be done. Automated trading systems are being used successfully to predict intraday and daily exchange rates.
Trading systems using only publicly available technical indicators can be profitable ? but those that also use proprietary information can be more accurate and therefore more profitable.
A joint project by the Centre for Financial Research (at the Judge Institute of Management, Cambridge University) and HSBC used the bank's customer order information to show that using proprietary information in trading systems can improve their forecasting performance and profitability.
The research findings also intuitively make sense. Successful traders in the FX markets apply human judgement to a range of information and techniques. In this project the researchers mimicked these traders by combining the techniques of technical analysis with the stream of public and non-public information available to them.",
