Do individual currency traders make money?
Document Type
Article
Publication Date
9-1-2015
Abstract
Using a unique online currency transactions dataset, we examine the performance, trading activity, drawdown, and timing abilities of individual currency traders. Evidence from 428 accounts during the 2004-2009 period shows that currency traders earn positive abnormal returns, even after accounting for transaction costs. Additionally, the results reveal that day traders not only trade more frequently than non-day traders, but also outperform them in terms of raw, a passive benchmark and risk-adjusted returns. Finally, sorts on trade activity, measured as the mean number of trades per day per account, and account turnover, show a positive association between performance and trade activity.
Recommended Citation
Abbey, Boris S. and Doukas, John A., "Do individual currency traders make money?" (2015). College of Business and Economics- Faculty Publications. 66.
https://digitalcommons.uncfsu.edu/college_business_economics/66