Data on Both Sides of the Currency Pair Trade
The single most important driver of currency movement is central bank policy. Since modern central banks use words as policy, Prattle’s central bank sentiment index represents vital data on the primary drivers of currency.
Because of this, our data is the foundation for market-beating FOREX trading strategies. For example, common trend-following strategies for dollar-euro trading have generated roughly 55% returns over the last 15 years. Using the Fed Index as the only trade signal, investors could have generated 70% returns–outperforming trend-following by 15%. And these returns were produced using only the most basic application of our data. Investors that employ data on both sides of currency pair or use the Fed Index in concert with standard trading strategies could easily see higher profits.
With hard data on the 18 biggest central banks around the world, our Central Bank Sentiment Indexes give FOREX traders the edge they need in a highly competitive space. Quantitative strategist Saheed Amen explores the application of Prattle’s central bank data to FOREX trading. Download the White Paper below to read this study in more depth.
