Studies on individual investors and professional
fund managers indicate that one reason professional
fund managers perform more consistently is their
reliance on trading systems for making investment
decisions. It could be hypothesized that a trading
system is a determining factor in producing higher
performance. This research sought to validate that
hypothesis by investigating the effect of trading
systems on individual trading performance, measured
by investors' trading decision accuracy rates. In
particular it examined the positive relationship
between the extent of investors' reliance on trading
systems and their performance level. A trading
system is a collection of technical trading rules
that could enhance an investor's decision accuracy
and predictive power in buying or selling a security
or a commodity future contract. For optimum
performance and profit, a trading system helps an
investor buy or sell a security at some specific
price at a particular time. Performance is the net
profit gained for an investor after liquidating all
his or her holding positions.
fund managers indicate that one reason professional
fund managers perform more consistently is their
reliance on trading systems for making investment
decisions. It could be hypothesized that a trading
system is a determining factor in producing higher
performance. This research sought to validate that
hypothesis by investigating the effect of trading
systems on individual trading performance, measured
by investors' trading decision accuracy rates. In
particular it examined the positive relationship
between the extent of investors' reliance on trading
systems and their performance level. A trading
system is a collection of technical trading rules
that could enhance an investor's decision accuracy
and predictive power in buying or selling a security
or a commodity future contract. For optimum
performance and profit, a trading system helps an
investor buy or sell a security at some specific
price at a particular time. Performance is the net
profit gained for an investor after liquidating all
his or her holding positions.