Behavioral variables and retail trading performance in the Foreign Exchange Market

• Auteur / Autrice : Peter Balhis
• Direction : Fredj Jawadi
• Type : Projet de thèse
• Discipline(s) : Gestion
• Date : Inscription en doctorat le 01/03/2022
• Etablissement(s) : Université de Lille (2022-....)
• Ecole(s) doctorale(s) : École doctorale des Sciences Juridiques, Politiques et de Gestion
• Partenaire(s) de recherche : Laboratoire : Lille University ManagENt Lab

Mots clés

Mots clés libres

Marché des changes

Levier

Spread

Trading

Foreing exchange market

Leverage

Spread

Trading

Résumé

In this research, we provide an overview on the process of foreign exchange market based on individual trading behavior; we explain the features provided for traders including wide variety of products, high leverages and low spreads where it attracts a big part of traders. After defining the process and its features, a general review on major pairs in foreign exchange market is elaborated, in addition to presenting main financial indicators used for technical analysis on daily basis. Then, we elaborate behavioral factors that affect trading performance generally and therefore trading return could be affected by those factors. Then we settle our trading parameters to test the profitability of trading in the midst of behavioral factors and after taking actions to limit those factors. We choose five pairs to test (EUR/USD, GBP/USD, USD/JPY, USD/CAD and USD/CHF). Indicators used to test those five pairs are (SMA 100, EMA 100, MACD 9, 12, 26 and BB 20, 2); our main strategy for entries is breakouts and turning points in addition to behavioral parameters. Finally, the results of the analysis prove that trading under consideration of behavioral factors is effective as they came positive and all of the trading indicators resulted with positive return.