A Sophisticated Optimization Algorithm for Obtaining a Group Trading Strategy Portfolio and Its Stop-Loss and Take-Profit Points

Due to the variety of financial markers, to determine an appropriate timing for buying or selling stocks is always a difficult task, the common way to handle it is using trading strategies formed by technical or fundamental indicators. To deal with the problem, an approach was proposed for optimizing a group trading strategy portfolio in the previous approach. To avoid unpredictable loss, the stop-loss and take-profit points are commonly used by investors to handle it. However, they are not easy determined by users when different trading strategies are employed. In this paper, attempting to provide a more useful group trading strategy portfolio, we propose an algorithm for obtaining a group trading strategy portfolio and its stop-loss and take-profit points using the grouping genetic algorithm. Experiments were conducted on a real dataset to reveal the effectiveness of the proposed approach.