Improved dynamic trading strategy IS algorithm

An improved dynamic IS algorithmic trading strategy is presented, taking into account of real time changes in the stock market. Actual situation in the Chinese stock market was used to design a simulated trading platform, then the improved dynamic IS algorithmic trading strategy was introduced. Traditional IS algorithmic trading strategy and random trading strategy were compared. Simulations confirmed that the improved dynamic IS algorithm was able to reduce effectively transaction costs, and was superior to both traditional IS algorithms and random trading strategy.