Automated Stock Trading System: A Guide to Integrating Technical Analysis & Fundamental Analysis
Optimizing automated stock trading systems involves two key elements: fundamentals and technical analysis. Fundamentals explore everything beyond trading patterns that can impact a stock's value, while technical analysis predicts future growth by analyzing trading data. This method uses data mining to create a logical decision model, making the stock market more accessible for all, especially newcomers. Here's how to integrate analytical tools to power up your financial automation and ROI. Challenges of Integrating Technical & Fundamental Analysis in Automated Trading While the benefits of integrating technical and fundamental analysis are evident, it's essential to acknowledge the challenges associated with this approach. 1. Complexity in System Design Combining technical and fundamental analysis requires a well-thought-out system design. You need to define how the two types of analysis will interact, the weightage assigned to each, and the criteria fo...