We think the Fed underestimates this linkage, in part by using the trade-weighted value of the dollar rather than the absolute value (the trade-weighted dollar mixes together changes in the dollar with changes in the value of foreign currencies).
Under this rule supervisors should require financial institutions to value assets using a long-term moving average when they are pledged (explicitly or implicitly) as collateral for new credit.
Investors can take advantage of this through using GTC (Good Until Canceled) Limit Orders to buy weakness to a value level, and to sell strength to a risky level.
This procedures requires a series of treatments using a fairly expensive piece of equipment to produce results that are of enormous value to a few people with extensive birthmarks, and of smaller value to many other people with smaller birthmarks.