Investment strategy on bitcoin and gold according to historic price

XJTU 2024 CSUC Submission10 Authors

31 Mar 2024 (modified: 03 Apr 2024)XJTU 2024 CSUC SubmissionEveryoneRevisionsBibTeXCC BY 4.0
Keywords: investment strategy, exponential sliding prediction model, gray prediction model
Abstract: In today's quest for wealth, individuals are exploring investment opportunities beyond traditional bank deposits to maximize their returns. Gold and Bitcoin have emerged as popular investment products due to their price volatility. However, making informed investment decisions based on expected price fluctuations can be challenging. Market traders aim to capitalize on price differences through buying and selling assets, such as gold and Bitcoin, to maximize client returns. In this study, we analyze daily price data of Bitcoin from November 9, 2016, to October 21, 2021, and gold prices on market trading days. Our objective is to develop a mathematical model that determines optimal investment strategies for cash, gold, and Bitcoin portfolios on a daily basis. We use price prediction models, including the second-order moving average method, second exponential sliding prediction method, and gray prediction model, to forecast the prices of gold and Bitcoin. Then a decision model is made to maximize the gain.
Submission Number: 10