Abstract

This paper presents a thorough examination of an active trading strategy based on deep crab harmonic patterns. Through a detailed analysis of individual trades, including specific entry and exit points, timeframes, and visual representations of harmonic patterns, the study aims to enhance transparency and replicability. A comparative analysis with a passive buy-and-hold strategy on the S&P 500 ETF provides valuable insights into the relative performance of the active strategy. The calculated success rate of 54.55% indicates a positive overall outcome, suggesting that the strategy achieved more winning trades than losing ones during the examined time frame. Despite these positive findings, the study acknowledges limitations, including the specificity of the data period, the focus on a single asset within a short timeframe, and the inherent subjectivity in pattern recognition. The paper concludes with a call for cautious interpretation and suggests avenues for future research to explore the strategy's applicability in diverse market conditions.

Advisor

Huang, Qimin

Second Advisor

Luri, Moses

Department

Business Economics; Mathematics

Disciplines

Finance and Financial Management | Mathematics | Other Applied Mathematics

Publication Date

2023

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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