Conceptual Paper of the Trading Strategy: Dogs of the Dow Theory (DoD)

17 Pages Posted: 1 Dec 2015

See all articles by Siti Hajar Nadrah Mohamad Ghouse

Siti Hajar Nadrah Mohamad Ghouse

Universiti Teknologi MARA (UiTM) - Faculty of Business and Management

Noryati Ahmad

Universiti Teknologi MARA (UiTM)

Date Written: June 4, 2014

Abstract

Investment objective of yielding higher return at lower risk is one of the challenges faced by participants (mainly investors) in share market. With an aim of overcoming this common challenge, past scholars have tested various trading strategies and even proposed new strategies but the outcomes are still puzzling. These high evolutions pertaining to trading strategies that occurred in investment world are covering several aspects such as fundamental features (ratios of the companies) and the economic variables yet the results were discourage due to mix results reported. Ample of causes could attribute to these situations where one of the most identifiable reason was unpredictability in global economic condition. Thus, this paper attempts to focus on the high yielding strategy of Dogs of the Dow Theory as one of the trading strategy in constructing portfolio in which this strategy are distinctive from the common high yielding approaches. This paper consists of several parts, namely the evolution of the trading strategies and the empirical evidences supporting Dogs of the Dow Theory as a trading strategy.

Keywords: trading strategies, portfolio selection, high-yielding strategy, dogs of the dow theory

JEL Classification: G10, G11

Suggested Citation

Mohamad Ghouse, Siti Hajar Nadrah and Ahmad, Noryati, Conceptual Paper of the Trading Strategy: Dogs of the Dow Theory (DoD) (June 4, 2014). Available at SSRN: https://ssrn.com/abstract=2697334 or http://dx.doi.org/10.2139/ssrn.2697334

Siti Hajar Nadrah Mohamad Ghouse (Contact Author)

Universiti Teknologi MARA (UiTM) - Faculty of Business and Management ( email )

Shah Alam
Selangor, 41200
Malaysia

Noryati Ahmad

Universiti Teknologi MARA (UiTM) ( email )

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