Author(s)

Lirou Jiang, Hongyu Guo, Yuehong Hou

Corresponding Author

Lirou Jiang

ABSTRACT

This paper establishes a mathematical model to study the trading strategy. Firstly, we establish the Gold Price ARIMA Prediction Model Bitcoin Price Smoothing Index Prediction Model to predict the future price of gold and bitcoin, respectively. The price of any subsequent day can be predicted with relative precision just from the price data before that day. Secondly, we established a set of judgments of the best point of buying and selling selection. Based on the price prediction, we can judge whether a particular day is the best buying and selling point. Thirdly, we built Risk Asset Portfolio Selection Model on Markowitz's theory. The model can get an optimal proportion of assets to control risks and increase returns by considering the benefits and risks of a single asset and the relationships among various assets in the portfolio.

KEYWORDS

ARIMA Prediction, Smoothing Index Prediction, Markowitz's theory, Trading strategy