A trading system based on technical indicators

Abstract

Many technical market indicators have been developed by technical analysts for trading stocks. However, many of them have proven to be unable to provide consistent results, and many could not even outperform passive trading of the stock. The objective of this Applied Research Project is to suggest a mechanical trading system that can outperform passive trading. This trading system is based on a combination of technical market indicators with various strengths in assessing the market condition and indicating market trends. They complement one another by eliminating losing trades and confirming accurate market turning points to indicate buying and selling signals. Thus, the system aims to minimise the chance of losses and yet make consistent profits.