Compare Buy and Hold Strategy with Technical Indicators Strategy on Index Trading with Empirical Studies
LAI, Ping-fu (Brian); LUI Tsz-hin

This is a quantitative research on the validity of two common trading strategies. One of it is buy and hold strategy. Another one is long and short strategy trading by the signal generated by technical indicators. The aim of this research is to find out the appropriate strategy. Besides, combination of technical indicators is tested in order to find out any difference in performance. Also, this research wants to find out the market different on these strategies. This study is useful for investor to determine his strategy. This study is rare in academic research. The method in this research is back test historical data of nine stock markets. Use statistic analysis to find out any significance different in mean/median of the profit generated by two strategies. It found that buy and hold strategy is better than long and short strategy.

Full Text: PDF     DOI: 10.15640/jibe.v7n2a16