US Dollar (DXY): trend-following strategy vs buy & hold
Currencies · tracked with Invesco DB US Dollar Index Bullish Fund (UUP)
UUP tracks the US Dollar Index (DXY) — the dollar against a basket of six major currencies, about 58% of which is the euro. It holds dollar-index futures backed by US Treasury bills.
Growth of 100 since 2007
buy & hold · total returnBuy & hold total return of Invesco DB US Dollar Index Bullish Fund (UUP). The Strategy Alpha results and live signal for US Dollar (DXY) are part of Plus.
What drives US Dollar (DXY)
US interest rates relative to the rest of the world, growth differences and flight-to-safety flows: the dollar often rises when markets panic.
How a trend-following strategy handles US Dollar (DXY)
The dollar moves in multi-year cycles. Because it tends to strengthen in crises, it can act as a hedge for global stock portfolios.
Our Strategy Alpha applies the same simple, rules-based trend filter to every market: invested while the trend is up, in Treasury bills while it is down, checked once a month. It is not a forecast — it is a discipline that aims to keep most of the long climbs and sit out the deepest drawdowns.
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Educational content, not investment advice. Backtested results are hypothetical and do not guarantee future results. Disclaimer.