Constructing a Turkish Lira Basket Index from USDTRY and EURTRY

Summary

The document defines a Turkish lira basket index as the equally weighted average of the USDTRY and EURTRY exchange rates. It presents the index as a line in a separate chart window and describes two optional, customizable moving averages applied to a selected price type. The listed default periods are 13 and 17, with simple moving averages selected by default; the configuration also names exponential, smoothed, and weighted moving-average modes.

This is an indicator specification rather than a trading strategy. It gives no rationale for the equal currency weights, rebalancing convention, data handling, or interpretation of rising and falling index values. It also reports no testing or performance evidence. Traders adapting the measure would need to verify quote conventions and decide whether the basket’s level or its moving averages have a defined role in a trading process.

Key ideas

• The index is defined as an equal-weight combination of USDTRY and EURTRY.
• The indicator is displayed as a line in a separate chart window.
• Two configurable moving averages are included, with default periods of 13 and 17.
• The listed moving-average choices include simple, exponential, smoothed, and weighted types.
• The document specifies an indicator but offers no trading rules or performance evaluation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.