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Profitability Of The Moving Averages Technical Trading Rules In An Emerging Stock Market-A Study Of Individual Stocks Listed On Pakistan Stock Exchange

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  • Muhammad Arif

    (Shaheed Benazir Bhutto University, Shaheed Benazirabad)

  • Muddasar Hasan

    (Massey University, New Zealand)

  • Abu Bakr

    (Massey University, New Zealand,)

  • Muhammad Ziaullah

    (Department of Business Administration, Ghazi University, D.G.Khan)

  • Muhammad Ali Tarer

    (Department of Sociology, Ghazi University, D.G.Khan.)

Abstract

This paper investigates the gainfulness of moving averages MA timing method over the purchase and hold procedure for single stocks deal in Pakistan Stock Exchange.We used Han et al., 2013 approach of single stock returns and indeterminate evidence of MA timing methodology insightful ability to increase higher returns over the strategy of purchase and hold.In addition, we report market riskadjusted returns to expel any market development impacts and apply elective moving averages lag lengths to check the robustness of our outcomes.We look at that individual stock returns are noisier than portfolio returns and the fundamental technical exchanging principle of moving average dont be able to anticipate single stock returns.We propose the utilization of more perplexing trading rules in future investigations to determine the gainfulness of technical trading rules in individual stocks

Suggested Citation

  • Muhammad Arif & Muddasar Hasan & Abu Bakr & Muhammad Ziaullah & Muhammad Ali Tarer, 2018. "Profitability Of The Moving Averages Technical Trading Rules In An Emerging Stock Market-A Study Of Individual Stocks Listed On Pakistan Stock Exchange," IBT Journal of Business Studies (JBS), Ilma University, Faculty of Management Science, vol. 14(2), pages 67-76.
    • Handle: RePEc:aib:ibtjbs:v:14:y:2018:i:2:p:67-76
    DOI: https://doi.org/10.46745/ilma.ibtjbs.2018.142.6
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    References listed on IDEAS

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    1. Adrián Fernández-P�rez & Fernando Fernández-Rodr�guez & Simón Sosvilla-Rivero, 2012. "Exploiting trends in the foreign exchange markets," Applied Economics Letters, Taylor & Francis Journals, vol. 19(6), pages 591-597, April.
    2. Gunasekarage, Abeyratna & Power, David M., 2001. "The profitability of moving average trading rules in South Asian stock markets," Emerging Markets Review, Elsevier, vol. 2(1), pages 17-33, March.
    3. F. FernAndez-RodrIguez & S. Sosvilla-Rivero & J. Andrada-FElix, 2003. "Technical analysis in foreign exchange markets: evidence from the EMS," Applied Financial Economics, Taylor & Francis Journals, vol. 13(2), pages 113-122.
    4. Tajaddini, Reza & Crack, Timothy Falcon, 2012. "Do momentum-based trading strategies work in emerging currency markets?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 22(3), pages 521-537.
    5. Michael D. McKenzie, 2007. "Technical Trading Rules in Emerging Markets and the 1997 Asian Currency Crises," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 43(4), pages 46-73, August.
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