Discipline: Mathematics and Statistics
Subcategory: Mathematics and Statistics
Janica Gordon - Southern University at New Orleans
Assume that each technical indicator is an asset ‘manager’. The most effective ‘manager’ will be the one that makes the most consistent profit with the least amount of transactions. The objective was to determine an exit condition that will improve the performance of each technical indicator methods for a group of stocks. Technical indicators are metrics derived from past data and they are used to make decisions about buying and selling stocks. This project compared the performance of technical indicator methods using different exit conditions. Twenty stocks were used to conduct this comparison with the collection of data from January 1, 2010 to December 31, 2013 and from January 1, 2014 to June 30, 2015 to determine the most effective exit condition. Taking into consideration, the Analysis of Variance (ANOVA) t-tests, and the number of trades, we were able to determine the most effective exit condition. This project is an attempt to develop efficient objective or mechanical trading methods for an investor.
Funder Acknowledgement(s): SURE/HRD-0928797
Faculty Advisor: Joe Omojola,