1

CHAPTER I
INTRODUCTION

1.1 OVERVIEW
This project emphasizes about the Foreign Trade System which is an Interface
between the Account holder and the market. In the initial phase details about the various
currencies and the profit and loss of currency hold is collected. The project comprises of several
modules which also includes currency converter and program to calculate profit and loss for both
the operation of the buyer and then the operations of the seller to be considered.
Purpose

The purpose of this project is to scientifically approach the foreign exchange market, and
to evaluate whether we can develop a strategy that can automatically trade in the market
successfully, and can outperform existing basic strategies.

To first understand the various overall market conditions- trending, directionless, and
volatile.

This is crucial, since different trading strategies prove appropriate for differing market
conditions.

1.2 SCOPE OF THE PROJECT

The foreign exchange (forex) market is a financial market for trading currencies. Trades are
made in currency pairs, such as United States dollar and the euro, in which equivalent amounts
of money are exchanged. In addition, hedge funds and investors may choose to trade in the forex
market for profit, as speculators, as the values of currency pairs change.
The forex market is rapidly growing, and an important contributor to this is the retail
investor the individual speculator who trades currency pairs for profit, either as a full-time job
or for supplementary income. Technology and computers play a key role in bringing these
individuals to the forex market.

OVERALL DESCRIPTION
1.3

PRODUCTPERSPECTIVE
Currency Converter gives you accurate and instant foreign currency Conversions .The

options

are varied for minimum currency trading investments. There is also mini account

where with a very small initial investment in a leveraged foreign currency, you can reach a
high level of reward and it is get it through the conceptual and satisfactory minimal risk.
SoftwareInterface
Front End Client - The applicant and Administrator online interface is built using JSP and
HTML.

The

Administrators

local

interface

is

built

using

Java.

Web Server-Glassfish application server(Oracle Corporation).Backend- Oracle database.

HardwareInterface
The server is directly connected to the client systems. The client systems have access to the
database and with in the interface of the server and properly done the interfaces.

1.4 DEFINITIONS AND ABBREVATIONS

Investor who are investing the amount to the bank account.
Bank authority-which is continuously checking the account details and database.
Broker- doing the trading account, buy and sell the shares.
Market authority-updating the market status.
HTML - Mark-up Language used for creating web pages
J2EE Java 2 Enterprise Edition is a programming platform and it is the part of the java

platform for developing and running distributed java applications.

HTTP - Hyper Text Transfer Protocol. TCP/IP Transmission Control Protocol/Internet
Protocol is the communication protocol used to connect hosts on the Internet.

TECHNOLOGIES TO BE USED

HTML
JSP
JavaScript
Java
XML
AJAX
TOOLS TO BE USED
Eclipse IDE ( Integrated Development Environment)
Rational Rose tool ( for developing UML Patterns)
1.5 SYSTEM FUNCTIONS
LOGIN
The Login module contains the form which contain membership name and
Member password. It includes Username and Password.
TRADING ACCOUNT DETAILS
This form contains the information about account holder, market status,
Currency held, trading histories, etc.
BUY
After the user logged in they can buy stocks online the user can buy stock only
it is available for buying.
SELL
After the user logged in they can sell stocks online, the user can sell his own
Stocks only.
BANK ACCOUNT DATABASE
After the trading is finished user has to select the type of transaction whether
Credit card account.
1.6 USER CHARESTERISTICS
BUYER
After the user logged in they can buy stocks online the user can buy stock only. It is
available for buying.
SELLER

After the user logged in they can sell stocks online , the user can sell his own
stocks only.
BANK ACCOUNT DATABASE
After the trading is finished user has to select the type of transaction whether
credit card Debit account.
1.7 ENVIRONMENTAL SPECIFICATION
SOFTWARE FUNCTIONS
Front End Client - The investor and buyer online interface is built using JSP and

HTML.The buyers local interface is built using Java.

Web Server - Glassfish application server(Oracle Corporation).
Back End - Oracle database.

1.8 CONSTRAINTS
The investor require a computer to submit their information.
Although the security is given high importance, there is always a chance of intrusion in

the web world which requires constant monitoring.

The user has to be careful while submitting the information.

USE CASE MODELLING DESCRIPTION

Use Case diagrams identify the functionality provided by the system (use cases), the
users who interact with the system (actors), and the association between the users and the
functionality.Use Cases are used in the Analysis phase of software development to articulate the
high-level requirements of the system. The primary goals of Use Case diagrams include:

Providing a high-level view of what the system does.

Identifying the users ("actors") of the system.

Determining areas needing human-computer interfaces.

ASSUMPTIONS AND DEPENDENCIES

The Applicants and Administrator must have basic knowledge of computers and English
Language.
The applicants may be required to scan the documents and send.
1.9 IMPLEMENTATION:
After the completion of UML diagrams for FOREIGN TRADING SYSTEM we should
generate the code. Select the tools option from main menu then select the sub option program
module in which we are going to generate the code in JAVA/VB/J2EE. Then go ahead and select
the generate code option as a result of code generation.
1.10 TESTING:
To perform the testing for the generated code again select the tools option from menu
bar and choose quality architecture option a sub window gets opened. We are going to perform
Unit Test and Scenario testing for our project. So, select these testing option one by one and
testing activity is carried out for all the coding and testing is carried out.

CHAPTER 2
DEVELOP THE USECASE MODELING

2.1INTRODUCTION TO USE CASE MODELING

Use case diagrams identify the functionality provided by the system,the users who
interact with the system(actors),and the association between the users and the functionality. Use
cases are used in the analysis phase of the software development to articulate the high level
requirements of the system.
Basic Elements:
Actor
Actor is something with behaviour,and is depicted using a stick figure. Actors are not
limited to humans. If a system communicates with another application, the that application can
also be considered an actor.
Use case
A Use case describes a sequence of actions that provide something of measurable value to
an actor. A use case is the functionality provided by the system.
Association
Associations are used to link Actors with Use cases ,and indicate that an actor participate
in the use case in some form. Associations are depicted by a line connecting the actor and the use
case.

<<communicate>>
<Use Case Name>

<Actor Name>

(from <Use Case Name>)

(f rom Actors)

We had mentioned the use case in fully dressed style.

2.2 USE CASE WRITTING
Use case name UCI

: overall trading system.

Scope

: next generation Trading system.

Level

: investor -goal level

Primary actor

: investor

Stack holders and interest

: Investor :should be accurate, no payment

error.

Banking authority: accurate record transaction of

bank account
.ensures it recorded into the data base.
Broker: should have an involment in trading the
account that related to buy and sell.
Marketing authority : very well knowledge about
the current
market status for buying and selling.
Main success scenario

: 1.investor investing the amount to the account.

2.bank authority record it in the database.
3.this account is traded by the broker.
4.the broker can buy the amount when.
low market value.
5. the broker can sell the amount when
market value.

high

6.market authority analyses the account and current

market status.
7.based on the market value the amount in sell to
the investor.
8.investor leaves with the maximized profit.
Extension

: a*:anytime the banking system get damage.

1.showing the error and gives message.
2.there may be power failure or main system
complaint.
2a: bank authority record it into the database.

1. if it has some database complaints or overload.

then show the message and reject the record
2. if there is no authorization then reject the entry.
3.if it is a invalid account number then show the
message and stop recording.
3a: This account is traded by the broker.
1.broker cant take the account due to low values
in the market. Then it shows the message and put
the account in waiting.
2.broker cant view the account due to system
failure. then shows the message and try again.
3.the broker cant match the amount to another due
to invalid entry. Then asking for valid entry.
4a: The broker can buy the amount when low
market value.
1.the broker cant buy it due to low value in the
market. again show the message and put it in
waiting.
2.the broker cant buy it due to
complaint.Then shows the error message.

system

5a: the broker can sell the amount when high

market value.
1.the broker cant sell the amount due to low value
in the market. Again shows the message and put it
in the waiting.
2.the broker cant sell it due to mismatch with the
investor need. Take an agreement from the investor
and can sell it.
3.the broker cant sell it due to some transaction
error. Then show the message.
4.cant sell it due to error in the system.

6a:market authority analyses the amount and

current market status.
1. market authority cant update the market status
due to miscommunication with the market.
2.it cant calculate the raised amount due to system.
Calculation problem. Then show the message and
calculate it again.
3. authority cant sell it to the investor due to some
transaction problem. Then show the message.
4. the authority cant update the market due to
system complaint. Then giving alert.
7a: Based on the market value the account in sell to
the investor.
1.cant sell it to the mismatch in the values. Shows
message try again.
2. it due to some error in the market then giving
alert.
3.the market cant sell it due to failed in updating
the latest status.
8a:investor leaves with the maximized profit.
1.cant get the profit due to system complaint .it
shows some message . then the investor try again.
2.he profit due to didnt sell the amount alert to the
broker.
Special Requirements

: computer system, internet connection, printer ,

cheque leaf.

Technology and data variation

: over rider record . for ever record enter an

authorization code.

------------------------------------

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Use case name uc2

: Login operations

Scope

: Next generation login system

Level

: Investor goal level

Primary actor

: Investor

Stakeholders and interest

: Investor: should be accurate, no login or payment

error.
System admin:verify the username and password
whether it is valid or not

Main success scenario

:1.Investor enter the username and password.

2.Admin verifys the username and password
whether it valid or not.
3.Then it allows to seethe current statistics of the
market.

Extension

:a*:Anytime the system admin may failed

1.Showing the error and give message.
2.There may be power failure or main system
complaint.
2a:Admin verifys the username and password
whether it is valid or not.
1.If the username and password are not valid
1.Then show the message that the entered password
and username incorrect.
2. Authentication failure due to system complaint.
1. Then showing the error.
3a: Allow to see the current statistics of the market
1. Cannot to see due to loading page problem.

11

1. Showing the error.

Special Requirements

: Computer System, Touch screen or Keypad,

internet connection.

Technology and data variation

: Override username and password

---------------------------------------

Use case name Uc3

:Trading account details.

Scope

: Next generation database system.

Level

: Bank authority goal level.

Primary actor

: Investor.

Stakeholders and interest

: Bank authority: Accurate record

transaction of
bank account .Ensures it recorded into database.
System admin:Allow the user to get into the account
and view the transactions.

Main success scenario

: 1.Storing the information about the account holder.

2.Storing the market status and currency held.
3.Storing the trading history.

Extension

: a* Anytime the database system get damaged

1. Showing the error and give message
2. Cannot store into database due to overflow.
1.Alert the system admin.
2a: storing the market status and currency held.
1. Cannot store due to irregular market changes.
2.Cannot load values due to connection problems.
3a. Storing the trading history.
Cannot store due to inconsistency in the database.

12

Special Requirements

: Database software and its physical components,

internet connection.

Technology and Data variation

: override the records after withdrawing the amount.

------------------------------------------------

Use case name Uc4

: Broker operations

Scope

: Next generation finance broker system

Level

: Broker goal level.

Primary actor

: Broker

Stakeholders and interest

: Sys. admin: Allow the user to get into the account

and view the transactions.
Broker: Should have the ability to buy and sell the
amounts.

Main success scenario

: 1.Buying the amount from the bank authority.

2. verify the market status and sell it to the
investor.

Extension

: a*: Anytime the systems get damaged

Showing the error and give message.
Buying the amount from the bank authority
1. Cannot buy due to invalid account
2. Cannot buy due to less amount than expected.
1. Alert the user to check and verify the account.
2a: Verify the market status and sell it to the
investor.
1. cannot verify market due to connection problem.
2.cannot verify the market due to irregular market
changes.

13

1.Alert the user to try again.

Special Requirements

: Internet connection, Computer system .

Technology and Data variation

: Override the records after withdrawing the

amount.

------------------------------

2.3 UML USE CASE DIAGRAM

14

Fig 1:UML Use case Diagram

CHAPTER 3
DEVELOPING UML ACTIVITY DIAGRAM

15

3.1 INTRODUCTION TO UML ACTIVITY DIAGRAM

Activity diagrams are used to document workflows in a system, from the business
level down to the operational level. The activity diagram is a variation of the state diagram where
the states represent operations, and the transition represent the activities that happen when the
operation is compleate. The general purpose of Activity diagrams is to focus on flows driven by
internal processing vs. external events.
Basic Elements
1)Activity states
Activity states mark an action by an object. The notations for these states are rounded
rectangles, the same notation as found in state chart diagrams.
2)Transition
When an activity state is completed, processing move to the other activity state.
Transitions are used to mark this movement and modeled using arrows.
3)Initial state
The initial state marks the entry point and the initial activity state. The notation for the
initial state is the same as in state chart diagrams, a solid circle. There can only be one initial
state diagram.
4)Final state
Final states mark the end of the modeled work flow. There can be multiple final states
on a diagram and these states are modeled using a solid circle surrounded by another circle.
5)Synchronization bar
Activities often can be done in parallel. To split processing, or to resume processing
when multiple activities have been completed, synchronization bars are used. These are modeled
as solid rectangles, with multiple transactions going in and/or out.

3.2 DRAWING UML ACTIVITY DIAGRAM

16

Fig 2: UML Activity Diagram

Login operation

17

enter a/c no.and

password

authenticatio
n
invalid
valid
allowing
access

Trading account details

18

storing information
about a/c holder
invalid
valid
checking amount
withheld
no money
held
record trading
history

Broker operations

19

buyng the amount

from bank authority

verify the market

status

sell it to the
investor

CHAPTER 4

20

DEVELOPING THE DOMAIN MODEL

4.1 INTRODUCTION TO UML CLASS DIAGRAM

A Class diagram in the UML gives an overview of the system by showing its classes and
the relationships among them. Class diagrams are static-they display what interacts but not what
happens when they do interact.
Basic Elements
1) Class
A class is a set of objects that share a common structure and common behavior. Its
represented by a rectangle divided into three parts: class name, attributes and operations.
<CLASS NAME>

<ATTRIBUTES>

<OPERATIONS>

2) Relationships
Relationships between classes are the connecting links. Relationships between
classes are generally represented in class diagrams by a line or an arrow joining the two classes.
a) Dependency
If A depends on B then this is shown by a dashed arrow between A and B.

3) Association

21

There is an association between two classes if an instance of one class must know about
the other in order to perform its work. An association between A and B shown by a line joining
two classes.
4)Aggregation
Aggregation is the association in which one class belongs to the collection.if B aggregates
A,then A is the part of B.

5)Generalization
Generalization is an inheritance link indicating one class is a superclass of the other.A
genalization has a triangle pointing to the superclass.An inheritance relationship is indicated in
the UML by an arrow with a triangular arrow head pointing towards to the general

4.2DRAWING UML CLASS DIAGRAM

22

Fig 3: UML class diagram

CHAPTER 5

23

DEVELOPING UML INTERACTION DIAGRAM

5.1 INTRODUCTION TO UML INTERACTION DIAGRAM

Interaction diagram describes how group of objects are collaborated with each other.
Two types of Interaction diagrams
1) SEQUENCE DIAGRAM
2) COLLABORATION DIAGRAM
SEQUENCE DIAGRAM
Sequence diagram document the interactions between classes to achieve a result,such as a
usecase.Because UML is designed for object-oriented programming.These communications
between classes are known as messages.The sequence diagram lists objects hirizondally,and time
vertically,and models these messages overtime.
Basic Elements
1)object
An object has state ,behavior, an identity.object intracts through there links to other
objects .the pictorial representation for an object is a class with pre fixed by the object name and
semicoloun.

:Object 1

24

5.2 DRAWING THE SEQUENCE DIAGRAM

Fig 4: UML sequence Diagram

25

Login Operation

Investor

trading
account
1: submitt account no.and password

2: invalid ,enter correct details

3: reset a/c no.,password

Trading A/C details

26

market
authority

investment

bank
database

1: buy
2: bank a/c balance> trading a/c balance

3: make investment

4: sell

27

Broker operations

broker

trading
database
1: buying the amount from bank
2: if no money.then confirmation
3: verify the market status
4: if status is profit
5: selling operation

28

5.3 DRAWING COLLABORATION DIAGRAM

Fig 5: UML Collaboration Diagram

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CHAPTER 6
DEVELOPING THE STATE CHART DIAGRAM

6.1 INTRODUCTION TO UML STATE CHART DIAGRAMS

A UML statement diagram illustrate the intresting events and states of an object and
the behavior of an object in reaction to the event transition are shown as arrows , labeled with
their events state are shown as rounded rectangles .
BASIC ELEMENTS
1)Events
An event is a siginificant or noteworthy occurrence
For examples : A telephone reciver is taken off the hook
2)States
A state is a condition of an object at a movement in a time , the time between events
For example
A telephone is in the state of being idle after the reciver is placed on the hook and until it is
taken off the hook.
3)Transitions
Transition is a relation between states that indicates that when an event occurs,the object
moves from the prior state to the subsequent state.
For example
When the event off hookoccurs,transition the telephone from idle to activestate.
4)Transition action
A trancition can cause a action to fire . in a software implementation , this may represent
the invocation of a method of the class of the state chart diagram

30

6.2 DRAWING THE UML STATE CHART DIAGRAM

Fig 6: UML State chart Diagram

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CHAPTER 7
DEVELOPING THE UML PACKAGE DIAGRAM

7.1 INTRODUCTION TO UML PACKAGE DIAGRAM

The logical architecture is the large scale organization of the software classes into
packages, systems and layers.
Its called the logical architecture because theres no decision about how these elements
are deployed across different operating system process or across physical computers in a
network.
LAYER:
A layer is a very coarse grained grouping of clasess,packages or subsystems that has a
cohesive responsibility for a major aspect of the system.
Layers are organized such that higher layers call upon services of lower layer,but not
normally vise versa.
Layered architecture is divided into
1)Strict layered architecture
2)Relaxed layered architecture
In strict layered architecture, a layer calls upon the services of thee layer directly
below it .This design is common in network protocol stacks, but not in information systems,
which usually have a relaxed architecture, in which a higher layer calls up on several lower
layers.
UML PACKAGE DIAGRAM:
It is used for designing logical architecture of the system using this package we can group
anything
Ex: classes, other packages
Nesting of packages is common in UML package diagram
Notation: Package name may be placed on the tag if the packages show inner members or
it is placed in the main folder if no members.

32

It is common to shoe dependency between packages so that developers can see the large
scale coupling in the system.
T he UML dependency line is used for a dashed arrow line with a arrow pointing
towards the dependant on packages.
Packages are defined by 3 symbols

Embedded packages
UML fully qualified names
Circle cross symbol

7.2 DRAWING THE UML PACKAGE DIAGRAM

33

Fig 7: UML Package Diagram

CHAPTER 8
IMPLEMENT THE TECHNICAL SERVICE LAYER

34

Technical services layer shows general purpose objects and subsystems that
provide supporting technical services, such as interfacing with a database or error logging. These
services are usually application-independent and reusable across several systems. Technical
service layer describes the relationship between different actors, components of the software
process for any admin seek the registration for new members. So that the new visitor can login
the website and search for book and if need can buy it.
SCREENSHOTS:

FORM2

35

FORM3

FORM4

36

FORM5

37

FORM6

FORM7

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CHAPTER 9
IMPLEMENT THE DOMAIN OBJECT LAYER
Domain object layer shows the software objects representing domain concepts(for
example, a software class sale) that fulfill application requirements, such as calculating the sales
total.
After technical services layer, the coding can be generated in C++ using Rational
Rose Enterprise Suite.
Domain Objects Layer for Foreign Trading System:
ACCOUNT
Option Explicit
'##ModelId=4D64958501F4
Private accoutno As Integer
'##ModelId=4D64958E0186
Private balance As Integer
'##ModelId=4D64959B0290
Private due As Integer
'##ModelId=4D6612990290
Public Sub accountno()
MsgBox "your transaction is successfull"
Form6.Show
End Sub
'##ModelId=4D66130F0128
Public Sub accountpay()
MsgBox "your transaction failed. Do your trading again"
Form5.Show
End Sub
ITEM
Option Explicit
'##ModelId=4D6495B600CB
Private name As String
'##ModelId=4D6495BC0213
Private id As Integer
'##ModelId=4D6495CA0251

39

Private rate As Integer

'##ModelId=4D6495D103C8
Private available As Integer
'##ModelId=4D6612C202CE
Public Sub getperfume()
Form3.Text3.Text = Form3.Text3.Text - Form3.Text5.Text
Form4.Show
End Sub
'##ModelId=4D6612D30167
Public Sub getdoll()
Form7.Text3.Text = Form7.Text3.Text - Form7.Text5.Text
Form8.Show
End Sub
TRADER:
'##ModelId=4D64952500BB
Public Sub login()
If Form1.Text1.Text = "ramya" And Form1.Text2.Text = "ramya" Then
MsgBox "logined successfully"
Form5.Show
Else
MsgBox "invalid login"
End If
End Sub
'##ModelId=4D64952901C5
Public Sub sourcing()
If Form5.Combo1.Text = "perfume" Then
Form3.Show
End If
If Form5.Combo1.Text = "dolls" Then
Form7.Show
End If
End Sub
'##ModelId=4D649531005D
Public Sub placeorder()
Form5.Show
End Sub
'##ModelId=4D64953600FA
Public Sub pay()
Form2.Show
End Sub

40

ADMINISTRATOR
'##ModelId=4D6496030128
Public NewProperty As item
'##ModelId=4D6CAE4001F4
Public Sub paybill2()
Form7.Text3.Text = Form7.Text3.Text - Form7.Text5.Text
End Sub
'##ModelId=4D649563003E
Public Sub bill1()
Form4.Text1.Text = Form3.Text4.Text * Form3.Text5.Text
Form4.Show
End Sub
'##ModelId=4D6CA397008C
Public Sub bill2()
Form8.Text1.Text = Form7.Text4.Text * Form7.Text5.Text
Form8.Show
End Sub
'##ModelId=4D64956F0399
Public Sub traceorder()
Form5.Adodc1.ConnectionString = "Provider=Microsoft.Jet.OLEDB.4.0;Data
Source=C:\Documents and Settings\Student\Desktop\datum\db.mdb;Persist Security Info=False"
Form5.Adodc1.RecordSource = "select itemname from itemtable"
Set Form5.DataGrid1.DataSource = Form5.Adodc1
Form3.Text5.Text = ""
End Sub
'##ModelId=4D6612B70186
Public Sub paybill1()
Form3.Text3.Text = Form3.Text3.Text - Form3.Text5.Text
End Sub

41

CHAPTER 10
IMPLEMENT THE USER INTERFACE LAYER

USER INTERFACE LAYER for Foreign Trading System

BUYER
After the user logged in they can buy stocks online the user can buy stock only. It is
available for buying.
SELLER
After the user logged in they can sell stocks online , the user can sell his own
stocks only.
BANK ACCOUNT DATABASE
After the trading is finished user has to select the type of transaction whether
credit card Debit account.
LOGIN
The Login module contains the form which contain membership name and
Member password. It includes Username and Password.
TRADING ACCOUNT DETAILS
This form contains the information about account holder, market status,
Currency held, trading histories, etc.
BUY
After the user logged in they can buy stocks online the user can buy stock only
it is available for buying.
SELL
After the user logged in they can sell stocks online, the user can sell his own
Stocks only.

42

CHAPTER 11
DEVELOPING THE IMPLEMENTATION DIAGRAMS

11.1 INTRODUCYION TO IMPLEMENTATION DIAGRAMS

Implementation shows the implementation phase of system development. Two types of
implementation diagrams:
i. Component diagram
ii. Deployment diagram
11.2 COMPONENT DIAGRAM
A component diagram depicts how the components are wired together to form larger
components and or software systems. Components are wired together by using an assembly
connector to connect the required interface of one component with the provided interface of
another component.
The components are slightly fuzzy thing.
It describes the module part of the system which encapsulates its components.
It describes the behaviour in terms of interface.
It is a design level perspective.
11.3DOCUMENTATION OF COMPONENT DIAGRAM
The main component in the component diagram is foreign trading system. The trader
who come to do the trading process and administrator who manages all the other processes is the
sub components.

11.4 DRAWING THE UML COMPONENT DIAGRAM

43

Fig 8: UML Component Diagram

11.5 INTRODUCTION TO DEPLOYMENT DIAGRAM
A deployment diagram models the physical deployment of artifacts on nodes. The nodes
appear as boxes, and the artifacts allocated to each node appear as rectangles within the boxes.
Nodes may have sub nodes, which appear as nested boxes.
It has set of computational nodes
It is the physical deployment of software element.
Two types of computational nodes
i)Device node
It is the physical computing resource.And it has processing and memory services to
execute the software.
ii)EEN(Executive Environment Node)
It is the software computing resoursethat runs with a nodeIt provides services to host
and execute the software elements.
11.6 DOCUMENTATION OF DEPLOYMENT DIAGRAM
The processor in this diagram is the foreign trading system. The devices are the trader
and administrator who perform the main activities in the system.

11.7 DRAWING THE DEPLOYMENT DIAGRAM

44

Fig 9: UML Deployment Diagram

CHAPTER 12
CONCLUSION

45

This project is to scientifically approach the foreign exchange market, and to

evaluate whether we can develop a strategy that can automatically trade in the market
successfully, and can outperform existing basic strategies. As the forex market and the number of
individual retail investors grows, a new, successful strategy is valuable to those seeking financial
prosperity by trading currencies.
Our approach was to first understand the various overall market conditions- trending,
directionless, and volatile. This is crucial, since different trading strategies prove appropriate for
differing market conditions. After determining the type of market, we tested basic strategies and
examined their performance. After optimizing these systems, we discovered the best approach
would be to develop our own system, incorporating the most successful features from several
strategies, and come up with a strategy that greatly outperformed the basic ones we had tested.