FinTech Exploration: Trading Strategy Analysis about Stocks of Excessive High Price and Excessive Low Price in Restricted Period
Date Issued
2016
Date
2016
Author(s)
Tsai, Chang-Ju
Abstract
FinTech has become the next golden growth target in this prolong period of low interest rate. According to Accenture’s data, global investment in FinTech reached US$22.26B in 2015, with a compound annual growth rate exceeding 100% over the past two years. However, services such as big data, robo-advisor, and automated trading are not widely seen in the securities industry in this country. As the era of FinTech fast approaches, this study aims to examine the opportunity for traditional securities houses to design a better business model. With innovation and the observations on the current securities industry, this study proposes and constructs a Robo-AA platform by combining the operating concepts of Robo-Advisors and Algotrade. This platform compares favorabley to traditional securities houses in the following five areas: 1) it extends customized consulting services to more retail investors; 2) it increases the shareabiliity of analysis results and improves the utilization efficiency of these results; 3) it is much easier to establish a large databases of personal trading strategies; 4) it lowers the labor cost by using big data for analysis instead of relying on consultants for recommendations; and 5) it reduces the time required for users on financial management by introducing strategy elimination mechanisms. In addition, by using the Robo-AA platform to simulate empirically some hypothetical scenarios related to disposal of shares, this study has obtained the following results: 1)Analyzing the hypothetical scenarios with this platform can indeed improve the depth and quality of the consultation, and 2)Strategy elimination mechanisms can not only reduce the time spent on asset management by the investor, but also increase the average return of the overall investment portfolio, as demonstrated in the empirical simulation in this study.
Subjects
FinTech
financial innovation
Robo-advisor
algorithm trading
Stock Market Surveillance System
Type
thesis
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