Exploring Trading Strategies and Their Effects in the Foreign Exchange Market

One of the most critical issues that developers face in developing automatic systems for electronic markets is that of endowing the agents with appropriate trading strategies. In this article, we examine the problem in the foreign exchange (FX) market, and we use an agent‐based market simulation to examine which trading strategies lead to market states in which the stylized facts (statistical properties) of the simulation match those of the FX market transactions data. Our goal is to explore the emergence of the stylized facts, when the simulated market is populated with agents using different strategies: a variation of the zero intelligence with a constraint strategy, the zero‐intelligence directional‐change event strategy, and a genetic programming‐based strategy. A series of experiments were conducted, and the results were compared with those of a high‐frequency FX transaction data set. Our results show that the zero‐intelligence directional‐change event agents best reproduce and explain the properties observed in the FX market transactions data. Our study suggests that the observed stylized facts could be the result of introducing a threshold that triggers the agents to respond to periodic patterns in the price time series. The results can be used to develop decision support systems for the FX market

Measurement of labile Cu in soil using stable isotope dilution and isotope ratio analysis by ICP-MS

Isotope dilution is a useful technique to measure the labile metal pool, which is the amount of metal in soil in rapid equilibrium (<7 days) with the soil solution. This is normally performed by equilibrating soil with a metal isotope, and sampling the labile metal pool by using an extraction (E value), or by growing plants (L value). For Cu, this procedure is problematic for E values, and impossible for L values, due to the short half-life of the 64Cu radioisotope (12.4 h), which makes access and handling very difficult. We therefore developed a technique using enriched 65Cu stable isotope and measurement of 63Cu/65Cu ratios by quadrupole inductively coupled plasma mass spectrometry (ICP-MS) to measure labile pools of Cu in soils using E value techniques. Mass spectral interferences in detection of 63Cu/65Cu ratios in soil extracts were found to be minimal. Isotope ratios determined by quadrupole ICP-MS compared well to those determined by high-resolution (magnetic sector) ICP-MS. E values determined using the stable isotope technique compared well to those determined using the radioisotope for both uncontaminated and Cu-contaminated soils.Annette L. Nolan, Yibing Ma, Enzo Lombi and Mike J. McLaughli