Document Type : Research Paper

Authors

• Farrokh Barzideh
• Sasan Allahgholi

Abstract

This study compares returns from using two different strategies­ technical analysis and Buy-Hold strategy- of investment in Iranian capital market. For this purpose, we calculate the returns from active strategy arising from Bollinger Bands and Relative Strength Index (RSI) model and compare with the return from using the Buy-Hold as a passive strategy, for the period of 1376-1386.
Our results show that during of our study period, the returns from active strategy by using Bollinger Bands and Relative Strength Index (RSI) model do not exceed the return from   using the Buy-Hold as a passive strategy in the TSE. However, Bollinger Bands and Relative Strength Index (RSI) model has a lower return variance relative to Buy-Hold strategy. Therefore, in point of view of risk, the active strategy is more advantageous than the passive strategy.

Keywords

• investment
• Technical analysis
• Bollinger Bands
• Relative Strength Index (RSI)
• Buy-Hold strategy