This project is a six-week stock market simulation analyzing and comparing two different trading strategies with an end goal of gaining newfound knowledge and experience in stock market investment. The two trading strategies tested were the Buy and Hold (BH) strategy and Exponential Moving Averages (EMA) strategy. The simulation was performed with nine selected companies and a starting investment of $100,000 for each trading method. All variables of the simulation were identical for each trading strategy. The Buy and Hold strategy returned a 0.802% gain while the EMA strategy returned a gain of roughly 0.02%. In comparison, the S&P 500 index saw around a 3% gain in the same span of six weeks. The results indicated that the Buy and Hold strategy was more effective at returning profits during a volatile span in the stock market. However, both strategies ended up underperforming the market. The project provided students the opportunity to gather valuable trading experience without any real monetary risk involved, benefiting them in future investing in the stock market.

• This report represents the work of one or more WPI undergraduate students submitted to the faculty as evidence of completion of a degree requirement. WPI routinely publishes these reports on its website without editorial or peer review.

Creator

• Che, Justin

Subject

• Computing
• Innovation
• Industry
• Learning
• Project-Based Learning

Publisher

• Worcester Polytechnic Institute

Identifier

• 125666
• E-project-082924-005209

Parola chiave

• Exponential Moving Averages Crossover
• Simulation
• Stock Market
• Buy and Hold

Advisor

• Tang, Dalin

Year

• 2024

UN Sustainable Development Goals

• 9 - Industry, Innovation and Infrastructure

Date created

• 2024-08-29

Resource type

• Interactive Qualifying Project

Source

• E-project-082924-005209

Rights statement

• In Copyright

Ultima modifica

• 2024-09-19