Tag indicator: a new predictive tool for stock trading
- Title
- Tag indicator: a new predictive tool for stock trading
- Creator
- Tom T.; Cheruparambil G.; Puthussery A.
- Description
- In this paper, TAGan indicator for stock market prediction in which volume-based means for measuring potential trading and investing decision-making is introduced. This task has been in correlation of the changes in the volume with the changes in the actual trade volume. Using this, a concise trading strategy is formulated. Hoping to outperform the market and analyze the results by back testing across intraday, price data for the last 1 year, 2019, is performed. It was discovered that about 48.9% of the time, the volume-based trading strategy outperformed and the returns from market are also healthy enough to support the claim. Statistical methods like linear regression, mean square error in prediction and stochastic gradient descent are applied. Furthermore, while the scope of the study was limited to a few stocks in Nifty in order to mitigate selection bias, nonetheless, we hypothesize that numerous other assets that similarly possess a predictable correlation to volumes based on daily high and low are likely to exist. The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd 2021.
- Source
- Lecture Notes in Networks and Systems, Vol-132, pp. 261-266.
- Date
- 2021-01-01
- Publisher
- Springer
- Subject
- Mean square error (MSE); Predictive stock market tool; Stochastic gradient descent method; TAG indicator
- Coverage
- Tom T., CHRIST (Deemed to be University), Bengaluru, India; Cheruparambil G., CHRIST (Deemed to be University), Bengaluru, India; Puthussery A., CHRIST (Deemed to be University), Bengaluru, India
- Rights
- Restricted Access
- Relation
- ISSN: 23673370
- Format
- Online
- Language
- English
- Type
- Book chapter
Collection
Citation
Tom T.; Cheruparambil G.; Puthussery A., “Tag indicator: a new predictive tool for stock trading,” CHRIST (Deemed To Be University) Institutional Repository, accessed February 24, 2025, https://archives.christuniversity.in/items/show/18782.