The law of promotion with prize fund --The most successful strategy in the current worldwide economic crisis

Each company has to reopen different new methods and means in order to maintain high degree of competitive power on the market in the period of economic crisis today. The described and developed method and procedure by the author give every company concrete decisions to reach a better competitive power on the market in the globalization and mostly in the economic worldwide crisis today. The described method sand procedures below was developed by the author 1993 as a president of consulting company ＂D ＆ M Dobrev Consulting House＂ for analysis, trading.     

Trades of the living dead: Style differences, style persistence and performance of currency fund managers

We make use of a new database on daily currency fund manager returns over a three-year period, 2005–2008. This higher frequency data allows us to estimate both alpha measures of performance and beta style factors on a yearly basis, which in turn allows us to test for persistence. We find no evidence to support alpha persistence; a manager’s alpha in one year is not significantly related to his alpha in the prior year. On the other hand, there is substantial evidence for style persistence; funds that rely on carry, trend or value trading or with a long/short bias toward currency volatility are likely to maintain that style in the following year. In addition, we are able to examine the performance of managers that survive through the entire sample period, versus those that drop out. We find significant differences in both the investment styles of living versus deceased funds, as well as their realized alpha performance measures. We conjecture that both style differences and ineffective market timing, rather than market conditions, have impacted performance outcomes and induced some managers to close their funds.     

Theory of the degree of trust： Toward to the economy of trust The new paradigm

Each company has to reopen different new methods and means in order to maintain high degree of competitive power on the market. The theory of trust developed by the author on the ground of his observations of many years on the market and formed respectively in theory and laws and practices to be applied in the contemporary life of every company, acting on the market have been presented. The theory gives every company concrete decisions to reach a better competitive power on the market in the globalization. The described below theory of degree of trust was developed by Dobrev, M. as a president of consulting company ＂D＆M Dobrev Consulting House＂ （Dobrev, M., 1993）for analysis and trading.     

Evaluating absolute return managers

One traditional measure of investment performance, the information ratio (IR), is defined as the active return (alpha) divided by the tracking error (the standard deviation of the active return). Calculating an IR is straightforward when the benchmark for performance is a buy-and-hold standard like the S&P 500. For absolute return managers, however, the typical benchmark is zero, meaning that any excess return is classified as alpha and deemed to represent the return from active management or skill. In this paper, we argue that this standard approach confuses beta returns and alpha returns. The former can be earned by following generic strategies that are easily implemented and often replicated by ETFs, while the later are associated with more original or complex strategies that more genuinely reflect unique skills or expertise. We propose a new performance metric that strips out beta returns associated with investment-style factors. This approach leads to a new statistic, the alpha ratio, which can dramatically impact the relative performance rankings of managers and provide a clearer signal of manager skill.     

The law of increasing of the final price and the law of management of the final price in the practice in the today economic crisis

The two described economic laws which are developed by the author before 10 years are very important for the marketing process in the economic crisis nowadays. Different methods and procedures developed by the author on the ground of his observations of many years on the market and formed respectively in theory and laws and practices to be applied in the contemporary life of every company acting on the market in the today economic worldwide crisis have been presented.     

Performance of Currency Trading Strategies in Developed and Emerging Markets: Some Striking Differences

Expanding the currency investment universe makes a lot of sense from a diversification point of view. Nevertheless, 60% of the total foreign exchange turnover is still only traded in three currency pairs (USD/EUR, USD/JPY and USD/GBP). The share of trading in local currencies in emerging markets is only around 5%. This can be explained by the fact that some currency managers fear investing in emerging market currencies. Many believe that political risk is the most dominant driver in these markets and that traditional investment rules do not work. In this paper, I apply four technical trading strategies for the developed market currencies and for the most traded emerging market currencies. The empirical results show some striking differences. They suggest that trend-following rules work better for emerging market currencies, while carry trading strategies perform better across developed market currencies. Nevertheless, it seems that conventional techniques could be successfully applied to both developed and emerging market currencies. I conclude that currency managers should not be afraid to diversify into emerging market currencies. They should, however, adjust their trading style accordingly.