Name
Abstract | ||
|---|---|---|
When investing in stocks, companies and individuals are interested in gaining the highest return while controlling risks to a reasonable range. Many advisory companies claim that they excel in predicting the trend of the stock market using machine learning techniques while other investors, such as Warren Buffett, hold the view that money is made by investing and the best strategy is to buy and hold, but don't watch too closely. Here we use SPY and TQQQ in the Year 2016 and 2017, two of the most closely watched, commonly discussed and invested stocks, as an example to explore these options. We compare four different strategies, including buy and hold, no investment, machine learning prediction, and random guess. Our result shows that buy and hold is the best strategy in when investing in TQQQ, although prediction by machine learning achieves reasonable accuracy in predicting the trend, which is consistent with the suggestion for long-term investment from Warren Buffet. When investing in SPY, machine learning approach works similarly to the buy and hold strategy. Both strategies outperform the random guess strategy. Moreover, investing in either of the stocks will likely outperform no investment in a 3-month period that we tested. The application of such strategies in different scenarios is further discussed.
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Year | DOI | Venue |
|---|---|---|
2019 | 10.1145/3314545.3314546 | Proceedings of the 2019 3rd International Conference on Compute and Data Analysis |
Keywords | DocType | ISBN |
Stock investment, buy and hold, machine learning | Conference | 978-1-4503-6634-2 |
Citations | PageRank | References |
0 | 0.34 | 0 |
Authors | ||
3 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Xiaoyu Sun | 1 | 95 | 16.54 |
| Maocheng Yuan | 2 | 0 | 0.34 |
| Jinhua Feng | 3 | 0 | 0.34 |