I know stock prices are extremely difficult to predict. Are there any algorithms that have been reported to work (better than random)?
2007-02-14 19:48:55 · 2 answers · asked by frank 2 in Business & Finance ➔ Investing
Sure, lots of them do with varying degrees of success. There is an entire field of stock market trading (note that I didn't say "investment") based on the analysis of "technical indicators". Its an old field and well documented. The reference work is "Technical Analysis of the Financial Markets", by Murphy. "Come into My Trading Room" by Elder is absolutely great, an easy read and something that anyone seriously thinking about making money in the stock market should read. Maybe memorize, it is that good. If you think they are hard to predict, use Yahoo Financial and get up a daily chart of CH. Is it predictable for, say, a month in the future?
2007-02-14 20:20:59 · answer #1 · answered by ZORCH 6 · 2⤊ 0⤋
A good article to get you started on understanding as much as possible about Algorithmic trading is here;
http://www.wikistock.com/wiki/Algorithmic_trading
2007-02-15 01:03:15 · answer #2 · answered by ehyal 1 · 0⤊ 0⤋
Suppose you found some algorithm that works, would you report to the world!? You'd be stupid to do so...
2007-02-14 20:14:20 · answer #3 · answered by Alex 4 · 0⤊ 1⤋