The case for active management from the perspective of Complexity Theory

Borradores de Economia
Número: 
495
Publicado: 
Clasificación JEL: 
G11, G14, G32
Palabras clave: 
Portfolio Management, Complexity Theory, Artificial Intelligence

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This paper approaches active management of baskets of currencies from the perspective of Complexity theory, where the market is analysed as a Complex Adaptive system. A basket of currencies is constructed using objective probabilities (propensities) and a