American Journal of Marketing Research
Articles Information
American Journal of Marketing Research, Vol.2, No.2, Apr. 2016, Pub. Date: Mar. 18, 2016
Stock Trading Using Analytics
Pages: 27-37 Views: 3079 Downloads: 5356
Authors
[01] Chandrika Kadirvel Mani, Business Analytics, Institute of Systems Science, National University of Singapore, Singapore, Singapore.
[02] Carol Anne Hargreaves, Business Analytics, Institute of Systems Science, National University of Singapore, Singapore, Singapore.
Abstract
The primary challenges with stock trading are the identification of the profitable stocks and trading those stocks without human errors and interference of personal sentiments in order to reap better returns. In this paper, we propose the automated stock trading in a semi-automated manner. We combine the usage of both fundamental and technical variables in the prediction of profitable stocks using the machine learning algorithm SVM. These stocks are then traded using stop loss/gain criteria. We buy/hold/sell the stocks based on the rules configured in the self-developed automated trading application.
Keywords
Stocks, Auto Trading, Support Vector Machines, Trend Following, Machine Learning
References
[01] Fundamental and Technical Analysis. www.investopedia.com/ask/answers/131.asp
[02] https://www.sungard.com/~/media/fs/capital-markets/resources/white-papers/Valdi-Algo-Trading-Complex-Map.ashx?sfdcCampaignId=70150000000Yyzo.
[03] Darie MOLDOVAN, Mircea MOCA, Ştefan NIŢCHI. “A Stock Trading Algorithm Model Proposal, based on Technical Indicators Signals”. Informatica Economică vol. 15, no. 1/2011.
[04] Daniel Paraschiv, Srinivas Raghavendra, and Laurentiu Vasiliu. “Algorithmic Trading on an Artificial Stock Market”. C. Badica et al. (Eds.): Intel. Distributed Comput., Systems & Appl., SCI 162, pp. 281–286, 2008. springerlink.com.
[05] Gheorghe Cosmin Silaghi & Valentin Robu. “An Agent Strategy for Automated Stock Market Trading Combining Price and Order Book Information”. 1-4244-0020-1/05/$20.OO a2005 IEEE.
[06] Lamartine Almeida Teixeir, Adriano Lorena Inácio de Oliveira. “A method for automatic stock trading combining technical analysis and nearest neighbor classification”. Expert Systems with Applications 37 (2010) 6885–6890.
[07] Fundamental data from Yahoo finance. http://finance.yahoo.com/q/ks?s=HSO.AX+Key+Statistics
[08] Kadirvel Mani Chandrika (2015). ”Web scraping in a simple way.” http://chandrikakadirvelmani.blogspot.sg/2015/04/web-scraping-in-simple- way.html.
[09] ASX charts for trend capturing. http://hfgapps.hubb.com/asxtools/Charts.aspx.
[10] Andrew C. Szakmary, M. Carol Lancaster. ”Trend-Following Trading Strategies in U. S. Stocks: A Revisit”. The Financial Review 50 (2015) 221–255.
[11] Simon Fong, Jackie Tai, Yain Whar Si, “Trend Following Algorithms for Technical Trading in Stock Market”. JOURNAL OF EMERGING TECHNOLOGIES IN WEB INTELLIGENCE • MAY 2011.
[12] Support Vector Machines. https://en.wikipedia.org/wiki/Support_vector_machine
[13] Wei Huanga;b, Yoshiteru Nakamoria, Shou-Yang Wang. “Forecasting stock market movement direction with support vector machine”. Computers & Operations Research 32 (2005) 2513–2522.
[14] Carol Anne Hargreaves, Chandrika Kadirvel Mani, “The Selection of Winning Stocks Using Principal Component Analysis”. American Journal of Marketing Research, Vol. 1, No. 3, October 2015 Publish Date: Aug. 10, 2015 Pages: 183-188.
[15] Confusion Matrix. https://en.wikipedia.org/wiki/Confusion_matrix
[16] Asa Ben-Hur Department of Computer Science Colorado State University, Jason Weston NEC Labs America Princeton, NJ 08540 USA. “A User’s Guide to Support Vector Machines”.
[17] Andrei A. Kirilenko and Andrew W. Lo, “Moore’s Law versus Murphy’s Law: Algorithmic Trading and Its Discontents”. Journal of Economic Perspectives—Volume 27, Number 2—Spring 2013—Pages 51–72.
600 ATLANTIC AVE, BOSTON,
MA 02210, USA
+001-6179630233
AIS is an academia-oriented and non-commercial institute aiming at providing users with a way to quickly and easily get the academic and scientific information.
Copyright © 2014 - American Institute of Science except certain content provided by third parties.