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2019 | OriginalPaper | Chapter

29. Investment Decision Support on Precious Metal Market with Use of Binary Representation

Authors : Krzysztof Piasecki, Michał Dominik Stasiak, Żaneta Staszak

Published in: Effective Investments on Capital Markets

Publisher: Springer International Publishing

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Abstract

In this paper, a detailed analysis of HFT systems’ properties is performed with use of binary exchange rate representation for precious metals: gold and silver. The binary representation is based on transforming tick data into a binary string. In order to assess the probabilities of changes on the researched exchange market, authors use mentioned binary representation. This paper contains an analysis of the following assessment criteria: expected annual number of transaction, systemic probability of success, expected single unitary payment, expected annual unitary payment, transaction risk assessment, single unitary risk bonus, annual unitary risk bonus, expected return rate, expected interest rate, return risk premium and interest risk premium. The research was performed on five-year historical data for precious metals to dollar exchange rates (XAU/USD and XAG/USD), with use of dedicated Mql4 and C++ software created by the authors.

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Footnotes
1
From a Discrete Probabilistic Transactional.
 
Literature
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go back to reference Piasecki, K., Stasiak, M.D.: The currency trading system with constant magnitude of unitary return In: Szkutnik W., Sączewska-Piotrowska A., Hadaś-Dyduch M., Acedański J. (eds.) 10th International Scientific Conference “Analysis of International Relations 2018. Methods and Models of Regional Development. Summer Edition”, pp. 40–49 (2018) Piasecki, K., Stasiak, M.D.: The currency trading system with constant magnitude of unitary return In: Szkutnik W., Sączewska-Piotrowska A., Hadaś-Dyduch M., Acedański J. (eds.) 10th International Scientific Conference “Analysis of International Relations 2018. Methods and Models of Regional Development. Summer Edition”, pp. 40–49 (2018)
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Metadata
Title
Investment Decision Support on Precious Metal Market with Use of Binary Representation
Authors
Krzysztof Piasecki
Michał Dominik Stasiak
Żaneta Staszak
Copyright Year
2019
DOI
https://doi.org/10.1007/978-3-030-21274-2_29