Profiting from a Contrarian Application of Technical Trading Rules in the US Stock Market

This paper investigates the gainfulness of moving averages (MA) timing method over the purchase and hold procedure for single stocks deal in Pakistan Stock Exchange. We used (Han et al., 2013) approach of single stock returns and indeterminate evidence of MA timing methodology insightful ability to increase higher returns over the strategy of purchase and hold. In addition, we report market risk-adjusted returns to expel any market development impacts and apply elective moving averages lag lengths to check the robustness of our outcomes. We look at that individual stock returns are noisier than portfolio returns and the fundamental technical exchanging principle of moving average don't be able to anticipate single stock returns. We propose the utilization of more perplexing trading rules in future investigations to determine the gainfulness of technical trading rules in individual stocks.

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Profitable Technical Trading Rules For The Austrian Stock Market

International Business & Economics Research Journal (IBER) ◽

10.19030/iber.v6i9.3405 ◽

2011 ◽

Vol 6 (9) ◽

Cited By ~ 1

Author(s):

Massoud Metghalchi ◽

Yong Glasure ◽

Xavier Garza-Gomez ◽

Chien Chen

Keyword(s):

Stock Market ◽

Predictive Power ◽

Moving Average ◽

Trading Costs ◽

Technical Trading ◽

Technical Trading Rules ◽

Trading Rules ◽

Price Patterns

Two moving average technical trading rules for the Austrian stock market are tested. Results indicate that moving average rules do indeed have predictive power and could discern recurring-price patterns for profitable trading. Results also support the hypothesis that technical trading rules can outperform the buy-and-hold strategy. Break-even one-way trading costs are estimated to be between .61 and 2.36 %. These break-even costs are larger than recent estimates of actual trading costs, implying profitable trading rules for the Austrian stock market.

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An Analysis on Directional Predictability of Asian Stock Prices Using the US Stock Price and Technical Trading Rules

KUKJE KYUNGJE YONGU ◽

10.17298/kky.2011.17.2.002 ◽

2011 ◽

Vol 17 (2) ◽

pp. 31-66

Author(s):

Lee Keun Yeong

Keyword(s):

Stock Prices ◽

Stock Price ◽

Technical Trading ◽

Technical Trading Rules ◽

Trading Rules ◽

The Us ◽

Directional Predictability

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The Cross-Sectional Analysis of Technical Trading Rules in the Korean Stock Market

10.37727/jkdas.2017.19.5.2601 ◽

2017 ◽

Vol 19 (5) ◽

pp. 2601-2610

Author(s):

Ki Yool Ohk ◽

Keyword(s):

Stock Market ◽

Technical Trading ◽

Cross Sectional ◽

Technical Trading Rules ◽

Trading Rules ◽

Cross Sectional Analysis ◽

Korean Stock Market ◽

The Cross ◽

Sectional Analysis

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Are Moving Average Trading Rules Profitable? Evidence From The Mexican Stock Market

Journal of Applied Business Research (JABR) ◽

10.19030/jabr.v24i1.1372 ◽

2011 ◽

Vol 24 (1) ◽

Author(s):

Massoud Metghalchi ◽

Xavier Garza-Gomez ◽

Yong Glasure ◽

Yung-Ho Chang

Keyword(s):

Stock Market ◽

Transaction Costs ◽

Predictive Power ◽

Moving Average ◽

Trading Costs ◽

Font Size ◽

Technical Trading ◽

Technical Trading Rules ◽

Trading Rules ◽

Price Patterns

This paper tests three moving average technical trading rules for the Mexican Stock Market. Results indicate that moving average rules do indeed have predictive power and can discern recurring-price patterns for profitable trading and support the hypothesis that technical trading rules can outperform the buy-and-hold strategy. Break-even one-way trading costs are estimated to be in the range of 1% to 3% over the period under consideration. These break-even costs, we believe, are large compared to recent estimates of actual trading costs, implying that moving average trading rules have predictive power and can generate consistent profits even after transaction costs are considered.

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