Using statistics to prove a stock trading strategy.
We propose that buing stocks that dropped more than 8% in one day is a good and reliable trading strategy. To prove this, we'll use statistical tools and records of the 20 biggest stocks from Warsaw Stock Exchange (WSE) by market cap.
We're using this dataset from kaggle. It contains information about open, close, low and high prices for each stock for each trading day. We'll limit our tests to years 2010-2018, to exclude major global recessions.
Firstly, make sure you have all the necessary libraries installed. In your R interpreter run:
source('install.r')
Download the dataset and move the CSV file to this directory. Rename it to stock_data.csv. Then in R interpreter run:
source('main.r')