Winner Strategies in a Simulated Stock Market

Ali Taherizadeh and Shiva Zamani ()
Additional contact information
Ali Taherizadeh: Graduate School of Management and Economics, Sharif University of Technology, Teymoori Sq., Tehran 145997-3941, Iran
Shiva Zamani: Graduate School of Management and Economics, Sharif University of Technology, Teymoori Sq., Tehran 145997-3941, Iran

IJFS, 2023, vol. 11, issue 2, 1-17

Abstract: In this study, we explore the dynamics of the stock market using an agent-based simulation platform. Our approach involves creating a multi-strategy market where each agent considers both fundamental and technical factors when determining their strategy. The agents vary in their approach to these factors and the time interval they use for technical analysis. Our findings indicate that investing heavily in reducing the value–price gap was a successful strategy, even in markets where there were no trading forces to reduce this gap. Furthermore, our results remain consistent across various modifications to the simulation’s structure.

Keywords: agent-based simulation; stock market; fundamental traders; technical traders (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2227-7072/11/2/73/pdf (application/pdf)
https://www.mdpi.com/2227-7072/11/2/73/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jijfss:v:11:y:2023:i:2:p:73-:d:1159533

Access Statistics for this article

IJFS is currently edited by Ms. Hannah Lu

More articles in IJFS from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().