Kawasaki Dollaremon Style Time Statistics Theory | Episode 1 Monthly Forecast January Edition [Kawasaki Dollaremon]
In FX, Mr. Kawasaki Doruemon emphasizes the importance of temporal elements. This project will teach you concrete trading strategies from a statistical approach to such Doruemon.
Note: This article is a reprint and revision of an article from FX攻略.com February 2020 issue. Please be aware that the market information written in the body differs from the current market.
Kawasaki Doruemon Profile
Kawasaki Doruemon. Feeling limits in discretionary trading, he sought a system trading method that could be profitable with as little mental burden as possible. After various simulations, he completed Guruguru Train.
Blog:Kawasaki Doruemon's FX Blog
Twitter:https://twitter.com/kawasakidoruemo
Trading Using Temporal Trends
Hello, I am Kawasaki Doruemon. In trading, I place importance on temporal trends. The forex market is moved by many countries and people, and holidays and lunch breaks in each country also have an impact. For example, as the year-end approaches, companies go on holiday and gradually begin to close out their positions; overseas companies in Japan tend to convert yen back to their own currencies for earnings reports. Therefore, year-end is said to be a time when the yen tends to depreciate (yen weakening).
Also, during the period before Obon in August, domestic companies and traders take Obon holidays and begin closing out positions, returning foreign currency to Japanese yen. In other words, before Obon, the yen tends to rise.
Therefore, I take this tendency and, using past monthly data, collect statistics by season to see how prices tend to move, and use it as a reference for trading.