Decision Support Systems Applied to Online Trading By Rosaana Pérez
DSS Applied to Online Trading A DSS aims for the following objectives: To address the effectiveness of strategic problem solving To support rather than replace a manager’s judgment To provide information and models DSS is the most effective solution to the “semistructure decision problem”
DSS Applied to Online Trading Online Trading Internet Individual Investors Online Brokers Online Trading
DSS Applied to Online Trading Architecture of a DSS for Online Trading The goal of DSS Stocks Orders Market data Data Warehouse Decision Models Financial Analysis Portfolio Mgmt. Risk Analysis
DSS Applied to Online Trading Basic Characteristics of a DSS used in online trading Online trading analyses a lot of securities simultaneously DSS suggest to divide the capital into several portions DSS generates buy/sell recommendations DSS is not an auto-trading system
DSS Applied to Online Trading DSS suggest to divide the capital into several portions Query lots of securities at the same time Rely on financial information of companies (financial indicators, revenues, losses, debt, etc…) Based on the models used, the DSS generate investing suggestions
Financial information of a company extracted by a DSS
DSS Applied to Online Trading DSS generates buy/sell recommendations Technical Analysis indicators
DSS Applied to Online Trading A more clear example:
DSS Applied to Online Trading A DSS is NOT a trading platform, they are used by trading platforms. Trading Platforms E-Signal, CyberTrader Act as DSS Allow investors to create their own trading rules and execute accordingly (buy/sell)
E-Signal
CyberTrader