Advances in Management and Applied Economics

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

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  • 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, G40

    Keywords: Short-term investment, Stock index futures, Slope coefficients, Bollinger bands, Artificial intelligence