Visualizing profitability: A heatmap approach to evaluate Bitcoin futures trading using VMA trading rules

Day, Min-Yuh; Ni, Yensen; Hsu, Chinning; Huang, Paoyu

doi:10.1016/j.heliyon.2023.e21376

Cited by 2 publications

(4 citation statements)

References 56 publications

(73 reference statements)

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“…Our findings suggest that implementing the BBTS could lead to favorable outcomes in trading cryptocurrencies [48], implying that technical analysis could be useful in trading cryptocurrencies [34,79]. Similarly, Day et al [80] analyze Bitcoin futures with VMA rules, offering a heatmap for effective strategies, potentially enhancing profits, and unveiling novel investment insights, suggesting that when trading cryptocurrencies, technical analysis could be considered.…”

Section: Discussionmentioning

confidence: 75%

Using Big Data Analytics and Heatmap Matrix Visualization to Enhance Cryptocurrency Trading Decisions

Ni,

Chiang,

Day

et al. 2023

Applied Sciences

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Using the Bollinger Bands trading strategy (BBTS), investors are advised to buy (and then sell) Bitcoin and Ethereum spot prices in response to BBTS’s oversold (overbought) signals. As a result of analyzing whether investors would profit from round-turn trading of these two spot prices, this study may reveal the following remarkable outcomes and investment strategies. This study first demonstrated that using our novel design with a heatmap matrix would result in multiple higher returns, all of which were greater than the highest return using the conventional design. We contend that such an impressive finding could be the result of big data analytics and the adaptability of BBTS in our new design. Second, because cryptocurrency spot prices are relatively volatile, such indices may experience a significant rebound from oversold to overbought BBTS signals, resulting in the potential for much higher returns. Third, if history repeats itself, our findings might enhance the profitability of trading these two spots. As such, this study extracts the diverse trading performance of multiple BB trading rules, uses big data analytics to observe and evaluate many outcomes via heatmap visualization, and applies such knowledge to investment practice, which may contribute to the literature. Consequently, this study may cast light on the significance of decision-making through the utilization of big data analytics and heatmap visualization.

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Section: Discussionmentioning

confidence: 75%

Using Big Data Analytics and Heatmap Matrix Visualization to Enhance Cryptocurrency Trading Decisions

Ni,

Chiang,

Day

et al. 2023

Applied Sciences

Self Cite

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“…These markets are impacted by a variety of factors, such as geopolitical shifts [32], supply and demand dynamics [33], and weather patterns [34], all of which can result in substantial price fluctuations [35][36][37]. This level of volatility makes it challenging to predict future price movements using only fundamental analysis since technical analysis may help investors make better decisions by analyzing price movements [38,39].…”

Section: Theoretical Foundations Of Technical Analysismentioning

confidence: 99%

“…Technical trend analysis assumes prices move in trends-upward, downward, or sideways. Traders use trend lines, moving averages, and other indicators to discover and confirm trends [20,39,48]. In energy and financial markets, trend analysis helps traders understand market direction, enabling them to make informed trading choices.…”

Section: Review Of Technical Analysis Usedmentioning

confidence: 99%

“…For instance, candlestick charts are used in technical analysis to show price trends and reversals [71]. Similarly, heatmaps can visually depict market volatility and price changes across various periods and asset categories since heatmap visualization may help traders make proper decisions [39,42,52,57]. Furthermore, advancements in data visualization technologies, such as augmented reality (AR) and virtual reality (VR), hold promise for enhancing traders' ability to analyze and interpret complex market data [174,175].…”

Section: Data Visualizationmentioning

confidence: 99%

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Navigating Energy and Financial Markets: A Review of Technical Analysis Used and Further Investigation from Various Perspectives

2024

Energies

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This review paper thoroughly examines the role of technical analysis in energy and financial markets with a primary focus on its application, effectiveness, and comparative analysis with fundamental analysis. The discussion encompasses fundamental principles, investment strategies, and emerging trends in technical analysis, underscoring their critical relevance for traders, investors, and analysts operating within these markets. Through the analysis of historical price data, technical analysis serves as a crucial tool for recognizing market trends, determining trade timing, and managing risk effectively. Given the complex nature of energy and financial markets, where many factors influence prices, the significance of technical analysis is particularly pronounced. This review aims to provide practical insights and serve as a roadmap for future research in the realm of technical analysis within energy and financial markets. This review contributes to the ongoing discourse and advancement of knowledge in this crucial field by synthesizing existing perspectives and proposing avenues for further exploration.

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Visualizing profitability: A heatmap approach to evaluate Bitcoin futures trading using VMA trading rules

Cited by 2 publications

References 56 publications

Using Big Data Analytics and Heatmap Matrix Visualization to Enhance Cryptocurrency Trading Decisions

Using Big Data Analytics and Heatmap Matrix Visualization to Enhance Cryptocurrency Trading Decisions

Navigating Energy and Financial Markets: A Review of Technical Analysis Used and Further Investigation from Various Perspectives

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