Sunday, October 03, 2010

Exchange traded fx products discusses the lack of growth in ETP in the FX space. However, there is an interesting product from Deutsche Bank that tries to combine three basic strategies. One case study could try to set the rules for such a product.

"For investors who do not want to take simple long/short positions, an alternative tactical approach to foreign exchange markets is offered by Deutsche Bank and its db x-trackers currency returns ETF. This combines three strategies widely used by traders in currency markets: carry, momentum and valuation. Like a quantitative hedge fund, it uses a rules-based process to take long and short positions in G10 currencies with regular rebalancing of the components."

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