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Effects of Slope Coefficients and Bollinger Bands on Short-term Investment

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  • Hsien-Ming Chou
  • Tsai-Lun Cho

Abstract

The trend of short-term investment in stock index futures is increasing because many investors are focusing on gaining benefits quickly and they often regard day trading as their primary occupation. However, most investors are only concerned with fast profits and have insufficient information to take risks, leading to the failure of short-term investment. Existing short-term investment studies are still in the early stages. Due to the lack of an empirical process and technical support, short-term forecasting could be ineffective or useless compared to fundamental analysis used in medium- or long-term investment. This study proposes a new method that includes slope coefficients and Bollinger bands features to support the needs of investors and provides an empirical process to evaluate their effect. In addition, to reflect real behaviors of investors, this study applies artificial intelligence technology to handle different timelines to solve the issues of unstable trendlines and turning point. The result strongly indicates that providing both slope coefficients and Bollinger bands enables investors to generate interests, and different timelines could have different effects on short-term investment. JEL classification numbers: G17, G23, G40Keywords: Short-term investment, Stock index futures, Slope coefficients, Bollinger bands, Artificial intelligence

Suggested Citation

  • Hsien-Ming Chou & Tsai-Lun Cho, 2020. "Effects of Slope Coefficients and Bollinger Bands on Short-term Investment," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(2), pages 1-7.
    • Handle: RePEc:spt:admaec:v:10:y:2020:i:2:f:10_2_7
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    References listed on IDEAS

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    1. Shaozhen Chen & Bangqian Zhang & GengJian Zhou & Qiaoxu Qin, 2018. "Bollinger Bands Trading Strategy Based on Wavelet Analysis," Applied Economics and Finance, Redfame publishing, vol. 5(3), pages 49-58, May.
    2. Johanna Amberger & Ralf Fendel, 2017. "The Slope of the Euro Area Phillips Curve: Always and Everywhere the Same?," Applied Economics and Finance, Redfame publishing, vol. 4(3), pages 77-88, May.
    3. Lucian A. Bebchuk & Alon Brav & Wei Jiang, 2015. "The Long-Term Effects of Hedge Fund Activism," NBER Working Papers 21227, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Hsien-Ming Chou & Tsai-Lun Cho & Chihli Hung, 2023. "Home-based Self-health Management Strategies of COVID-19 for the Elderly in Applied Economics," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(1), pages 1-1.
    2. Hsien-Ming Chou, 2024. "Predicting Turnover Rates for Short-Term Stock Index Investments Using Artificial Intelligence and Empirical Analysis," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 14(6), pages 1-18.
    3. Hsien-Ming Chou, 2024. "Analyzing the Impact of COVID-19 on Short-Term Investment Behavior through Stochastic Oscillator Indicators," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 14(5), pages 1-6.
    4. Hsien-Ming Chou, 2023. "Using Bull and Bear Index of Deep Learning to Improve the Indicator Model on Extremely Short-term Futures Trading," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 13(6), pages 1-6.

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    More about this item

    Keywords

    short-term investment; stock index futures; slope coefficients; bollinger bands; artificial intelligence;
    All these keywords.

    JEL classification:

    • G17 - Financial Economics - - General Financial Markets - - - Financial Forecasting and Simulation
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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