An ETF Trading Decision Support System by Using Neural Network and Technical Indicators

Abstract

This paper proposed a neural network based decision support system (DSS) to provide investors with suggestions on transaction timing and transaction strategies of Taiwan 50 index exchange traded funds (ETF). Various indicators were employed with corresponding application principles as the neural network underwent assigned training and learning procedures. It was revealed in the study results that the simulated transaction behavior following recommendations by the proposed system yielded better profits than solely applying Taiwan's weighted stock index.