JUCS - Journal of Universal Computer Science 16(5): 852-861, doi: 10.3217/jucs-016-05-0852
Detecting Market Trends by Ignoring It, Some Days
expand article infoJessie Wenhui Zou‡, Xiaotie Deng§, Ming Li Ii|
‡ Bioinformatics Solution Inc., Waterloo, Canada§ City University of Hong Kong, Hong Kong, Hong Kong| University of Waterloo, Waterloo, Canada

Corresponding author: Jessie Zou ( wh_zou@yahoo.com )

© Jessie Zou, Xiaotie Deng, Ming Ii.
This article is freely available under the J.UCS Open Content License.
Citation: Zou JW, Deng X, Ii ML (2010) Detecting Market Trends by Ignoring It, Some Days. JUCS - Journal of Universal Computer Science 16(5): 852-861. https://doi.org/10.3217/jucs-016-05-0852
Open Access
Abstract
The last k days of trading together tell the financial market trends. It may be inconceivable if we are told to ignore the 3rd, 6th, and 8th day, a priori. We introduce a novel approach to show exactly that - it pays to ignore some fixed days among the recent k days, fixed a priori,in order to minimize risk and maximize profit simultaneously. The theory developed here has direct implications to our common senses on how we should look at the financial market trends.
Keywords
optimal spaced seeds, market trend prediction