Home // ALLDATA 2022, The Eighth International Conference on Big Data, Small Data, Linked Data and Open Data // View article
Authors:
Yoshihisa Udagawa
Keywords: Stock trading simulator; Global market comparison; Technical analysis; Candlestick chart; Moving average.
Abstract:
This paper deals with the development of a stock trading simulator. It uses candlestick chart patterns and the 5-day moving average for deciding trade opportunities, and tries to make profits on both trades that start with buying stocks and those that start with selling stocks, i.e., long and short trades. Experiments are performed using the seven world markets consisting of Euro Stoxx 50 (the European Union), DJI and NASDAQ (the United Sates), Bovespa (Brazil), Sensex (India), SSEC (China), and Nikkei 225 (Japan). Profits are simulated using ten-year daily stock data of the seven global stock markets with and without a trading fee. The results of experiments are generally consistent in the seven markets, showing the wide range of applicability of the simulator. The average success rates for trades that are started with buying stocks with a trading fee remains in the middle of 60%, while it is at the beginning of 20% for those begin with selling stocks because margin interest to loan stocks squeezes profits. Although the developed simulator has some limitations, it provides a benchmark for measuring profitability of trading techniques and helps to analyze stock trade timings that lead to significant profits or losses.
Pages: 1 to 7
Copyright: Copyright (c) IARIA, 2022
Publication date: April 24, 2022
Published in: conference
ISSN: 2519-8386
ISBN: 978-1-61208-945-4
Location: Barcelona, Spain
Dates: from April 24, 2022 to April 28, 2022