SYKORA, M.D. and SINGH, S., 2007. Developing trading strategies based on risk-analysis of stocks. IN: SINGH, S. and SINGH, M. (eds.). Progress in Pattern Recognition. London : Springer-Verlag, pp.83-96.
Advances in Pattern Recognition;
Risk Management has always been of fundamental importance to financial
markets. The aim of all good trading strategies is based around minimising possible
risk and at the same time achieving most profit. A balance between these two
factors must be struck for different risk – profit profiles. In this paper we describe an
innovative way for visually quantifying risk, and we show how our method can be
used as a tool for developing trading strategies to help manage risk. We run our
algorithm on selected historical FTSE-100 stocks and pick some companies for a
more detailed study of trading strategies. The method shows considerable promise
for future research work.
This is a conference paper. It was presented at Progress in Pattern Recognition, 2007, Southampton, United Kingdom
and published by Springer-Verlag: http://www.springer.com/