Trading with technical analysis
Linkosalo, Olavi (2022)
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202205057497
https://urn.fi/URN:NBN:fi:amk-202205057497
Tiivistelmä
Aim of the thesis was to research theories and mechanics behind trading and how to gain an edge in the markets to have probabilities in favour of the trader and for the trader to be profitable.
The research was done by using quantitative methodology. Primary data was collected by conducting a backtesting journey in which a years’ worth of trading data was collected and analysed. Secondary data was collected from books and electronic sources.
Strategy that was used was to get in a trend during a pullback or a reversal and target a fixed take profit level in relation to the stop loss size. All the rules were followed in every trade. The strategy yielded a win rate of 52 percent, with 33 percent gain on account.
Conclusion of the work was that by implementing a strict, rules-based strategy into trading and by following strict money management rules, there is an edge to be found in trading.
The research was done by using quantitative methodology. Primary data was collected by conducting a backtesting journey in which a years’ worth of trading data was collected and analysed. Secondary data was collected from books and electronic sources.
Strategy that was used was to get in a trend during a pullback or a reversal and target a fixed take profit level in relation to the stop loss size. All the rules were followed in every trade. The strategy yielded a win rate of 52 percent, with 33 percent gain on account.
Conclusion of the work was that by implementing a strict, rules-based strategy into trading and by following strict money management rules, there is an edge to be found in trading.