Thorbjörn Wallentin and Martin Andersson present their master's thesis

Systematic carry trading with technical analysis and volatility filters

Abstract

Carry trading is a zero-investment which uses the difference in
interest rate between countries to make positive return. This is
possible by borrowing money in a country with low interest rate, and
lending it in a country with higher interest rate. This is called
passive carry trading, and will make positive return as long as the
gain from the interest differential is not offset by the currency
movement. We have developed a user-friendly application which made it
possible for us to study if it was possible to make money from carry
trading, not only passive carry trading, but also from other
strategies which involved e.g. technical analysis and volatility
filters.