A binary options trading system based on a genetic algorithm questions
Given that the price of crude oil futures increased many times during the sample period, we further contend that genetic algorithms are helpful in investments. This paper attempts to answer whether in real life an investor can use moving average technical trading rules to obtain excess returns through searching for profitable moving average trading rules with category best binary options software reviews algorithms in the crude oil futures market. We compared the generated trading rules with the buy-and-hold BH strategy to determine whether generated moving a binary options trading system based on a genetic algorithm questions trading rules can obtain excess returns in the crude oil futures market. The fitness of every individual is calculated in the evaluation step.
If a short moving average price is higher than a long period moving average price, traders will believe the price will rise and take long positions. Step 4 generate new population. However, in this paper, we utilize moving averages to generate trading rules, which may be a simple and efficient approach.
Although genetic algorithms cannot help traders receive positive returns during these periods, the algorithms can help traders reduce loss by changing positions with the change of price trends. The first group begins inthe last group ends inand each day price series with a step of is selected. In these periods, prices declined smoothly, experiencing some small fluctuations during the process.
When prices fluctuate, such as in periods 1, 2, 7, 8, 13, 19, and 20, then not opening positions until one average price exceeds another by at least one standard deviation is the best option. The fitness value calculation, selection, crossover, and mutation of individuals are implemented using the GA toolbox of Sheffield in the Matlab platform. Of the six moving average indicators, AMA and TMA are the most popular moving average calculation methods for the crude oil futures market in total, while TPMA is an outstanding method in some occasion.
Our trading rules also yield positive returns during the fluctuations by the timely changing of positions. The calculation methods of moving average indicators are presented in Table 1. Step 4 generate new population.