Table 2.5: Results of the best strategies applied to the Pound-Dollar exchange rate. Panel A shows the results of the best five technical trading strategies applied to the Pound-Dollar exchange rate for the period 1983:1-1997:6. Panel B shows the results of the best technical trading strategy in each of the three subperiods: 1983:1-1987:12, 1988:1-1992:12 and 1993:1-1997:6.

Panel A: Full sample, best five strategies
  Strategy
  [   %b td fhp stl] rYe re NB NS Buy>0 Sell>0 Buy Sell Buy-Sell
1983-1997
  [ TRB 100 1%   50 ] 0.0164 0.00007 215 250 0.767 0 0.00161 -0.00017 0.00178
                1.93088 5 5 0.8 0 2.75658 -0.36090 2.38333
  [ TRB 50 1%   50 ] 0.0127 0.00005 350 400 0.571 0 0.00097 -0.00008 0.00105
                1.42095 7 8 0.571 0 2.55344 -0.20080 1.94510
  [ TRB 5 1.5%   10 ] 0.0126 0.00005 160 160 0.563 0 0.00175 -0.00060 0.00235
                1.68605 16 16 0.563 0 2.51482 -0.87011 2.40450
  [ TRB 250   2 25 ] 0.0115 0.00005 125 125 0.6 0 0.00184 -0.00108 0.00292
                1.95839 5 5 0.6 0 2.66970 -1.80209 3.19810
  [ TRB 250 0.1%   25 ] 0.0115 0.00005 125 125 0.8 0 0.00184 -0.00119 0.00303
                1.95916 5 5 0.8 0 2.67404 -1.95430 3.29853
Panel B: Subperiods, best strategy
1983-1987
  [ MA 20,40       2%] 0.0333 0.00013 398 268 0.827 0 0.00089 -0.00040 0.00128
                1.34254 12 13 0.667 0 2.79888 -0.96585 2.47666
1988-1992
  [ FR 0.5%   5 25 ] 0.0534 0.00021 307 325 0.593 0 0.00141 -0.00056 0.00197
                1.97336 13 13 0.615 0 3.18590 -1.56473 3.45882
1993-1997
  [ MA 30,50     10 ] 0.0221 0.00009 130 130 0.615 0 0.00120 -0.00013 0.00132
                1.53693 13 13 0.615 0 2.38807 -0.25821 1.88737

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