Emerging Researchers National (ERN) Conference

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Examination of the Effect of Exit Condition on Investment Performance

Undergraduate #85
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,

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This material is based upon work supported by the National Science Foundation (NSF) under Grant No. DUE-1930047. Any opinions, findings, interpretations, conclusions or recommendations expressed in this material are those of its authors and do not represent the views of the AAAS Board of Directors, the Council of AAAS, AAAS’ membership or the National Science Foundation.