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Price Probability Predictor. Capital Investments Assisted by a Probability Field

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Business Revolution in a Digital Era

Part of the book series: Springer Proceedings in Business and Economics ((SPBE))

Abstract

Capital investment is a sustained activity nowadays. After the worldwide release of the electronic trading systems, automated decision-making investment software is the new trend in financial speculation. A significant part of capital trading is fully computerized today. The buying and selling orders are made and sent automatically, almost in real-time. The price evolution is analyzed by servers using advanced mathematical algorithms. This chapter will present one of these models named Price Probability Predictor. It is a method to build a probability field based on the price history and the real-time price action. The revealed function will generate the current probability of a price growth in the next time intervals. Automated entry and exit signals and market limit conditions will be built using the new indicator, in order to automate the whole investment process. Capital investment results will also be included in the current paper to qualify the presented trading methodology and to compare it with other similar models. In conclusion, it was found that the Price Probability Predictor is a reliable mathematical algorithm that can assist any trading decisions, in both ways, manual or automatic capital investments.

Paper financed by Algorithm Invest (https://algoinvest.biz).

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Authors and Affiliations

  1. Economic Informatics Doctoral School, Academy of Economic Studies, Bucharest, Romania

    Cristian Păuna

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  1. Cristian Păuna
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Correspondence to Cristian Păuna .

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Editors and Affiliations

  1. Bucharest University of Economic Studies, Bucharest, Romania

    Alina Mihaela Dima

  2. Dipartimento di Management, Sapienza University of Rome, Rome, Italy

    Fabrizio D'Ascenzo

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Păuna, C. (2021). Price Probability Predictor. Capital Investments Assisted by a Probability Field. In: Dima, A.M., D'Ascenzo, F. (eds) Business Revolution in a Digital Era. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-59972-0_21

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