By a News Reporter-Staff News Editor at Obesity, Fitness & Wellness Week -- Data detailed on Economics - Computational Economics have been presented. According to news reporting out of Lanzhou, People’s Republic of China, by NewsRx editors, research stated, “This paper analyzes investors’ trading strategies based on the theory of evolutionarily stable strategies and replicator dynamics model. Under the assumptions closer to a real market, we reveal the relationships between the investor’s price anticipation and equilibrium sustained state.”
Financial supporters for this research include Jiangsu Innovation Program Foundation of Graduate Education, National Natural Science Foundation of China.
Our news journalists obtained a quote from the research, “If the mean value of price deviation anticipated by investors is a negative value, there is one equilibrium sustained solution. And if the mean value of price deviation anticipated by investors is a positive value, one equilibrium sustained solution or two equilibrium sustained solutions are likely to appear in our models. This research is beneficial to evaluate differences in revenues between rational traders and noise traders, to understand dynamic evolutionary process of trading strategies, and to find equilibrium sustained solution. In addition, financial crisis as an exogenous factor is introduced into the evolutionary model. Based on theoretical analysis and simulation experiment, the results show that case 3 in theoretical analysis does not occur in the simulation after the outbreak of financial crisis, and case 1 and case 2 in theoretical analysis correspond to the different regions of the anticipated price deviation curves. Moreover, the changes of two equilibrium sustained solutions show opposite tendency characteristics with an increasing of the mean value of price deviation of risk asset. Relative to the existing research results, this paper distinguishes the different yield between risk assets and riskless assets, and considers the existence of transaction cost, assumes investors having different risk aversion coefficient, and takes financial crisis as an example to research the impacts of exogenous variables on investors’ trading strategies.”
According to the news editors, the research concluded: “Through comparative analysis, the conclusions drawn from simulation experiment are consistent with equilibrium sustained solutions in theoretical analysis.”
For more information on this research see: Dynamics Evolution of Trading Strategies of Investors in Financial Market. Computational Economics , 2018;51(4):743-760. Computational Economics can be contacted at: Springer, Van Godewijckstraat 30, 3311 Gz Dordrecht, Netherlands. (Springer - www.springer.com; Computational Economics - http://www.springerlink.com/content/0927-7099/)
Our news journalists report that additional information may be obtained by contacting B.H. Wu, Lanzhou Univ Finance & Econ, Dept. of Finance, Lanzhou 730020, Gansu, People’s Republic of China. Additional authors for this research include T.T. Duan and J.M. He.
The direct object identifier (DOI) for that additional information is: https://doi.org/10.1007/s10614-016-9639-3. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.
Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2018, NewsRx LLC
CITATION: (2018-04-21), Studies from B.H. Wu and Colleagues Yield New Information about Computational Economics (Dynamics Evolution of Trading Strategies of Investors in Financial Market), Obesity, Fitness & Wellness Week, 4224, ISSN: 1532-4664, BUTTER® ID: 015500550
From the newsletter Obesity, Fitness & Wellness Week.
https://www.newsrx.com/Butter/#!Search:a=15500550
This is a NewsRx® article created by NewsRx® and posted by NewsRx®. As proof that we are NewsRx® posting NewsRx® content, we have added a link to this steemit page on our main corporate website. The link is at the bottom left under "site links" at https://www.newsrx.com/NewsRxCorp/.
We have been in business for more than 20 years and our full contact information is available on our main corporate website.
We only upvote our posts after at least one other user has upvoted the article to increase the curation awards of upvoters.
NewsRx® offers 195 weekly newsletters providing comprehensive information on all professional topics, ranging from health, pharma and life science to business, tech, energy, law, and finance. Our newsletters report only the most relevant and authoritative information from qualified sources.