The profitability of interacting trading strategies from an ecological perspective

To study the interactions among trading strategies and their profitability from an ecological perspective.

A market ecosystem model is established, and simulations are conducted to examine the interactions and profitability of trading strategies in different market ecologies.

Strategies compete with themselves, and different time-window trend strategies exhibit competition and predator–prey relationships. Value and trend strategies demonstrate both symbiosis and predator–prey relationships. The profitability of a strategy depends on the balance of supporting and inhibiting effects, with greater supporting effects leading to higher maximum profit and market capacity, while greater inhibiting effects result in losses. The model suggests that fundamental analysis has a larger market capacity than technical analysis.