Friday, May 28, 2010

SIP Proposals

My first SIP proposal would be to develop a trading system using computer algorithms which trades a security based on s selection of simple trading tools. This list might include: 50-day MA, 200-day MA, a slow stochastic oscillator, MACD oscillator, Bollinger Bands, Volume, and basic trendline analysis. I would program a computer to look for these signals and that would buy or sell a security. I would use historical data from finance.yahoo.com or marketwatch.com. I could write my own backtesting software. I could use hypothesis testing to determine if my strategy returns higher than a market index with statistically significant results.

My SIP proposal which would require the collection of original data would be a cross-cultural study to determine how people from different countries view the importance of investing. I could do a stratified random sample from 3 or 4 different countries. I could measure things like percent of income invested, risk tolerance, or average expected retirement age.


No comments:

Post a Comment