Using Random and Numerical algorithms for Trading Stocks for Sectors (Hotels, Industry and Telecommunications) in the Iraqi Stock Exchange
Alkut university college journal,
2019, Volume 4, Issue 2, Pages 61-77
Abstract: The study aims to achieve the best returns, particularly, the volatility of prices for financial assets. We will attempt to find a way to determine the best buying and selling when the price of the asset is subject to mean- reverting model. This model deals with the price that balance and stationarity. We will use stochastic and numerical algorithm to get the best price for buying and selling. The sample of the study (hotels, industry, communications), which includes (8) companies listed in the Iraqi market selected for the period (1/1 / 2015-30 / 6/2018). To make the hypotheses of the study, the two statistical programs (R Maple) were used. The study resulted in several conclusions: The random algorithm used in our study is a method that does not need to determine the distribution of the price variable. The advantages of prices using the random algorithm are relatively less than the price advantages using the numerical algorithm. This is what distinguishes the random algorithm. The few benefits indicate that the financial market is balanced and efficient and that prices are subject to market mechanism and supply and demand forces In it, in light of this Conclusions reached a set of recommendations including: the adoption of random algorithm in the Iraqi market for securities because they achieved a reasonable profit margin and ease of implementation by the dealers and researchers because they rely on the daily stock price only.
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