There are thousands of factors that will influence the stock market which will make it difficult to predict. People like from wall street are using abstruse mathematical formulas and models to predict the market in order to maximize the profit. They acquire more information quickly as the normal trader, they own super computers and super prediction programs and most of all they have a huge amount of capital.
Fortunately there are also random factors making rational predictions difficult even for the profis. So what if we consider the stock market as/close to a cassino? Actually I am trading stocks using simple strategy based on the probability theory for years with small success. However I am not sure wheather the "theory" works as is or works only under certain condition or it was just luck. One day I realized, maybe I could validate my strategies by simulating them. I mean buy and sell the stocks using the same strategy within the same time period and then see whether they are able to make stable profit. The simulation are meaningful if we could prove that the probability of the win and lose are actually equal or unpredictable at all.
I want to develope a program to simulate the stock trading using designed strategies with the history data from the yahoo finance api. This program will not only be used to simulate the rational strategies but also meaningless approaches such as random trading or trading without watching the price fluctuation etc...