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Winner Strategies in a Simulated Stock Market

Author

Listed:
  • 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)

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.

Suggested Citation

  • Ali Taherizadeh & Shiva Zamani, 2023. "Winner Strategies in a Simulated Stock Market," IJFS, MDPI, vol. 11(2), pages 1-17, May.
    • Handle: RePEc:gam:jijfss:v:11:y:2023:i:2:p:73-:d:1159533
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    References listed on IDEAS

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