Building an FX Portfolio like the Stablecoin in ‘Startup’
- By FXT
- May 17, 2023
- FXT Analysis
If you ever watched the Netflix series ‘Startup’, you might recall the stablecoin they made based on a stable exchange rate against a range of currencies.
As a CFD account holder with FXT, you can build a foreign exchange portfolio designed to create profit, by building an FX portfolio rather than simply trading a single stock at a time.
Since many people don’t have patience to hold positions, traders often lose sight of the reason they enter the game, and that is to make profit and often to live a better life. So what if there is a different way to attack the markets?
Macroeconomic ideas are centred around fundamental shifts in global economics, a financial ecosystem. This ecosystem is built to interconnect with one another, and there’s a way to take advantage of ‘the system’.
Understanding some of the major economic functions between the countries, such as interest rates, could help you to build a foreign exchange portfolio (say buying the AUDUSD but selling the EURUSD buying the USDJPY and selling the EURGBP) to format a portfolio of directional bias that you believe will eventually go in your favour.
The variations of these assets will be somewhat smoothed out compared to holding a single trade. There’s a couple of ways you could look at this portfolio style strategy. You could take snippets out of the market, closing all of your positions once the portfolio is up by a percentage you want, such as 1% or 2%. The other option would be to hold your portfolio until you believe the conviction of your strategy has been fulfilled and the majority of the portfolio is at a target.
How do you choose?
We’ve written about Bollinger bands quite a bit. It’s a simple indicator based on standard deviation.
Let’s say you selected pairs that have a fundamental bias in a particular direction, then couple that with the last touch of the weekly Bollinger (did price touch the bottom Bollinger band or the top Bollinger band last?), then looking to match fundamental direction and targeting the opposite side of the Bollinger that was touched last.
There’s plenty of strategies and methodologies you could consider, but holding an FX portfolio may be easier than you think since you have access to CFD’s and leverage.
Don’t have an account yet? Start building your Foreign Exchange Portfolio today