An Empirical Comparison of Fast and Slow Stochastics

Chong, Terence Tai Leung and Tang, Alan Tsz Chung and Chan, Kwun Ho (2016): An Empirical Comparison of Fast and Slow Stochastics. Published in: IFTA Journal No. 2017 (1 January 2017): pp. 105-107.

Abstract

This paper compares the profitability of Stochastic Oscillators (STC) in 13 major stock market indices worldwide. We demonstrate, in contrast to common expectations, that the fast STC outperforms the slow STC in most markets, despite that fact that the latter can filter noisy trading signals whilst the prior cannot.

• Item Type: MPRA Paper
• Language: English
• Keywords: Fast Stochastic; Slow Stochastic; Efficient Market Hypothesis.
• Subjects: G - Financial Economics > G1 - General Financial Markets > G14 - Information and Market Efficiency ; Event Studies ; Insider Trading; G - Financial Economics > G1 - General Financial Markets > G15 - International Financial Markets

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