Why don you use technical indicators (price and volume data) and stock charts to find better buy and sell points?
Before turning to AI techniques, a lot of our research was focused on historical testing of technical trading systems. Despite years of work, we were not able to find any benefit in using technical analysis for stocks. It is tempting for investors to flip through a stack of stock charts looking for price and volume patterns, but the human mind is often easily fooled into seeing patterns that do not exist. In order to really test a technical trading system, one needs to use a computer program that can objectively test a trading methodology over thousands of stocks and over many time frames, making sure to apply the proper trading costs. After doing this, we did not find any reliable technical indicators that are profitable over the long term. The whole validity of technical stock analysis hinges on one question – is it reasonable to think that the future price of a stock can be predicted by looking at past prices? In our opinion, this makes about as much sense as turning the seat around
