ABSTRACT
So far, we have examined two classes of technical analysis. In one class, the equally and variably weighted portfolio approaches rely on tailoring technical rules, for example, the double moving average rule, for each currency by finding optimal parameters in prior periods. These two portfolio approaches differ only in how the speculations are combined into portfolios. The second general class of technical analysis considered above looks at speculation on indexes, whether optimally weighted or simple equally weighted indexes; the technical rules are then applied to the index as a whole with rule parameters optimally chosen for the particular index rather than for each currency in the index. The third general class that this book considers is the "portfolio upgrade" approach.
