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Are Trading Rules Profitable in Exchange-Traded Funds?

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DOI: 10.4236/ti.2011.22013    4,299 Downloads   8,244 Views   Citations

ABSTRACT

The Exchange-traded fund (ETF) is a burgeoning financial vehicle. Despite its growing importance, there has been a lack of empirical studies on the profitability of technical trading rules in the ETF market. This paper assesses the profitability of the On-Balance Volume indicator (OBV) on ETF trading. It is found that the trading rules associated with the OBV are able to generate handsome returns in the ETF market. This is in contrast to the conventional wisdom that funds should be bought and held.

Conflicts of Interest

The authors declare no conflicts of interest.

Cite this paper

T. Chong, E. Li and K. Kong, "Are Trading Rules Profitable in Exchange-Traded Funds?," Technology and Investment, Vol. 2 No. 2, 2011, pp. 129-133. doi: 10.4236/ti.2011.22013.

References

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