Are random trading strategies more successful than technical ones?
Where this comes from
- Record sourced from PubMed, PMID 23874594.
- Also identified by DOI 10.1371/journal.pone.0068344 and PMC identifier 3708927.
- Licence recorded as CC BY.
- The licence permits redistribution, so the abstract is shown in full and the full text is available from the publisher.
Abstract
In this paper we explore the specific role of randomness in financial markets, inspired by the beneficial role of noise in many physical systems and in previous applications to complex socio-economic systems. After a short introduction, we study the performance of some of the most used trading strategies in predicting the dynamics of financial markets for different international stock exchange indexes, with the goal of comparing them to the performance of a completely random strategy. In this respect, historical data for FTSE-UK, FTSE-MIB, DAX, and S & P500 indexes are taken into account for a period of about 15-20 years (since their creation until today).
Medical subject headings
- Behavior
- Social Class
- Social Marketing