Background

Market timing is the strategy of making buy or sell decisions of financial assets (often stocks) by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from technical or fundamental analysis. This is an investment strategy based on the outlook for an aggregate market, rather than for a particular financial asset [1].

To decide the right time to get in and out of the market is challenging. Is it possible that we can predict the market to get better returns and reduce risks or we should just “buy-and-hold”?

Our project is a attempt to see whether a certain Market Timing Model can be useful. And more importantly to evaluate it using a system method.