rutujadhage / mscfe-690-capstone---group-4529

Capstone project submitted as part of MScFE, WQU

MScFE-690-Capstone---Group-4529

Capstone project submitted as part of MScFE, WQU

Alan, Farley 2001 has discussed 7 major swing strategies and suggested variations of how those can be deployed by traders to make profits. The strategies are quite elaborate and require identification of chart patterns manually to spot trading opportunities. The project seeks to design a python program that can scan various stocks for the patterns, code the accurate entry, stop loss and target, track the positions and exit at the appropriate prices. Our project seeks to study the Indian stock market specifically the National Stock Exchange (NSE). Shorting is only allowed in intra-day, options and futures. Hence our project will focus on long positions in cash segment. Futures have been ruled out for the amount of margin (capital) required. Options have been ruled out due to lack of available data for backtesting. The 3 strategies that we will focus in our project are 1) Coiled Spring 2) Finger Finder and 3) Power Spike.

The project involves designing a Python program to automate the identification of swing trading opportunities in the Indian stock market. The focus is on three specific strategies—Coiled Spring, Finger Finder, and Power Spike—outlined by Alan Farley. The manual identification of chart patterns is timeconsuming, prompting the need for a programmatic approach. The project aims to streamline the entire trading process, from pattern recognition to entry execution, tracking, and exit, with a comprehensive comparative analysis of the performance of the original strategies and an enhanced strategy incorporating RSI and 9EMA filters.