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Title: Market Ecologies : The Effect of Information on the Interaction and Profitability of Technical Trading Strategies
Authors: Ladley, Daniel
Jackson, A.
First Published: 17-Feb-2016
Publisher: Elsevier
Citation: International Review of Financial Analysis 2016, 47, pp. 270–280
Abstract: Technical trading strategies make profits by identifying and exploiting patterns in market prices—patterns generated by the interaction of market participants. Using a model market populated by individuals using a range of trading rules we show that the presence of technical traders may be beneficial, in some cases reducing volatility and increasing price efficiency. In particular, contrarian traders who base their decisions on high frequency data have the largest positive effect. It is also found that if technical traders condition their actions using ‘real time’ information, they partially emulate arbitrageurs and make positive profits.
DOI Link: 10.1016/j.irfa.2016.02.007
ISSN: 1057-5219
Version: Post-print
Status: Peer-reviewed
Type: Journal Article
Rights: Copyright © 2015 Published by Elsevier Inc. This manuscript version is made available after the end of the embargo period under the CC-BY-NC-ND 4.0 license 
Description: The file associated with this record is under a 36-month embargo from publication in accordance with the publisher's self-archiving policy. The full text may be available through the publisher links provided above.
Appears in Collections:Published Articles, Dept. of Economics

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