The application of evolutionary algorithms for stock trading using technical analysis

Abstract

^{Trading in stock markets is a profitable business that can make a lot of profit to invertors if they would be able to buy or sell securities in the appropriate time. However, there are many factors to impact the movement of stock price. Therefore, the investors’ decision to choose the right time for trading is very challenging. A common technique which many investors take into account for helping them making their decisions is technical analysis including technical plotting and many technical indicators, and this technique is used to forecast stock movement in the future. In addition, these technical indicators are evaluated by using mathematical formulas with past stock price or using other calculating process. In past fifteen years, there were researches that applied evolutionary algorithms with technical analysis to generate trading rules, and these algorithms work by learning from past stock price, and then they generate trading rules for investors in their future stock trading.}