Optimization and statistical tools for automatic trading in the stock and currency market

Abstract

The use of software for automatic trading on stock and currency exchange (forex) is growing up fast over the world. Some estimatives say that the rate of automatic trading is already about 80% on developed countries, while for Brazil and other developing countries this rate is just about 15%. However, there is a great potential to expect a quick increase in this rate as more safe and profitable methodologies became available.These softwares, usually called robots or expert advisors, are based on observation and interpretation of signals, statistical models and artificial intelligence methodologies, among others.This project focus on developing models and statistical tests to match, evaluate and optimize several strategies based on signals of different methods of technical analysis in finance, usually used in stock market. The methodologies and the resulting algorithms will be implemented for investment trading automation in the stock market values, indices, commodities and currency exchange. We also plan to develop an investment broker company focused on micro-investors and low-incoming people. (AU)