Implement and analyze the night trading

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Question: In this assignment, you will implement and analyze the follow- ing night trading ("insomnia") strategy: For your stock, for every day you have the "Open" and "Close" prices. You will investigate the performance of the following "night." strategy. You believe a stock has "inertia" to continue moving in the same direction overnight as during the day. We assume that before the market closes, you know the closing price for that day. You will trade just before the market closes. You will hold positions overnight and your "insomnia" strategy for every day is as follows: 1. if the "Close" price of today is higher than the "Open" price of today, then the stock increased in price during today. You believe there is enough upward inertia to carry this upward movement overnight until tomorrow.

Reference no: EM133559878

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