Tom Lydon

ETF Trends’ Guide to Currency ETFs

Thanks for your comment, AlphaQ.

Your strategy sounds great, if in fact it plays out that way. Seasonality works sometimes, but there are also times when it doesn’t based on unforeseen economic events. Although I’ve monitored seasonality for a long time, I’m much more comfortable with a moving average strategy. I wait for a position to cross above its long-term trend line (200-day moving average) before buying; I sell when it drops below or 8% off the recent high, whichever comes first. This strategy applies when it comes to currencies, too.

If you want to capitalize on short-term movements, consider following the 50-day or 20-day if you have the ability to be in there monitoring these positions day in and day out.