The high degree of foreign exchange price uncertainty is not easy to cope with. In reality, this problem is what attracts the speculators. It’s fascinating to see the other side of the problem, too. There are several traders who contend that the forex markets are still highly effective. This ensures that it’s very challenging to make solid progress from them. Where’s the truth? It probably lies somewhere in the middle.

In this article, we will be talking about two separate trading models that are highly popular. They have also proven that they are efficient and that they deserve more recognition.

AlphaFXC: The trend type models

The trend type model is exactly what its name suggests. It bases its progress on how a certain currency does at a certain moment. If it is on a specific trend, then most likely it will continue to follow that trend for a while. Trend models are varied, from GARCH techniques to momentum methods. However, it’s worth noting that if one such trend generates alpha following research and action, then all of the others are more likely to do it too. When using this model, traders should be careful to not over-optimize either.

The option trading models

There is a long discussion concerning option trading models. There is only a handful of institutions that are prepared enough to back-test them correctly by using data. Generally, options have a fair price. However, there are always some market features that traders can explore to their advantage. Selling short-term options and acquiring long-term for at least a year can be a good solution. Implied option volatility is also a predictable thing that traders that use these models can take advantage of.

Alpha Securities Holding Limited is a technology giant focused on the currency market. Generating alpha in the Forex markets is not an easy job but it can be done using the right approach. The high uncertainty in foreign-exchange markets has made them tempting to speculators for many years. Often a major currency pair, such as the dollar/yen, will change several percent a day, a nice occurrence if one has already developed the proper position. Alpha Securities Holding Limited can offer the necessary guidance when it comes to efficient Forex trading.