Application of Simple Technical Trading Rules to Swiss Stock Prices: Is it Profitable?

23 Pages Posted: 25 May 2006

See all articles by Dušan Isakov

Dušan Isakov

University of Fribourg - Faculty of Economics and Social Science

Marc Hollistein

Banque Cantonale de Genève (Deceased)

Date Written: January 1999

Abstract

This paper tests if the use of trading rules based on the crossing of moving averages on Swiss stock prices yields proftable results. The use of bands and oscillators such as the relative strength index or the stochastic indicator is also investigated. These rules are tested on daily returns of the SBC General Index for the period 1969-1997. It is found that the most profitable rule is a double moving average with averages computed on one and five days. With this rule, an annual average return on the SBC Index of 24.30% is obtained compared to a buy-and-hold annual return of 6.25%.

Suggested Citation

Isakov, Dušan and Hollistein, Marc, Application of Simple Technical Trading Rules to Swiss Stock Prices: Is it Profitable? (January 1999). Available at SSRN: https://ssrn.com/abstract=904366 or http://dx.doi.org/10.2139/ssrn.904366

Dušan Isakov (Contact Author)

University of Fribourg - Faculty of Economics and Social Science ( email )

Fribourg, CH 1700
Switzerland

Marc Hollistein

Banque Cantonale de Genève (Deceased)

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