TRADING-STRATEGIES

Preface -

The project deals with comparing different strategies using multiple indicators as well as using them on a standalone basis. The indicators used here are 'MACD' and 'Bollinger Bands' In this project, we have generated returns using three different strategies - two strategies using only MACD and B-Bands on a standalone basis and one strategy by combining both of them. A detailed study of the returns generated has also been done at the end of the project.

Results -

It can be easily seen that our third strategy in which both the indicators are combined to get buy and sell signals gives much higher returns than the other two strategies. Using this project, it can also be proved that the strategies which work well in most of the markets don't work well in the Chinese markets as they generally do not follow global trends. It was also found that the strategies we have discussed here work well only on long time periods, preferably 2 years or more.