The purpose of this project is to test the profit making and risk management attributes of an investment program called Major Analytical Paradigm Shift (MAPS). To achieve this we randomly select 30 stocks from different industries and different growth stages and backtest them with MAPS. To further test the risk attributes, we select 30 of the most and the least volatile stocks for the last 10 years and compare their MAPS performance results against the same period SPX, Buy-and-Hold profit and Sharpe Ratios. The testing shows that although MAPS does not universally outperform the Buy-and-Hold strategy, it is superior at handling risk and produces significant results with the increase in volatility.
Worcester Polytechnic Institute
Major Qualifying Project
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