A study of gold and bitcoin trading strategies based on quantitative trading decision models

Yu Zhang; Shulin Xu; Liwei Hou

doi:10.54097/hbem.v7i.6962

Authors

Yu Zhang
Shulin Xu
Liwei Hou

DOI:

https://doi.org/10.54097/hbem.v7i.6962

Keywords:

QTDM, Bitcoin, Gold, gray forecast, time series model.

Abstract

In the computer era, high frequency trading is one of the hottest topics in the financial investment market. In this paper, a quantitative trading decision analysis is conducted for a portfolio consisting of gold and bitcoin, applying gray prediction to get the future asset price, applying time series to predict the risk of purchasing the asset, and combining the two to make a reasonable buying and selling operation. To prove the accuracy of the prediction, the MSE indicator is used to measure the error of the gray prediction model, and the results show that the error is small. Finally this paper also proves that the model is well robust by varying the transaction cost.

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