OPTIMIZING ALGORITHMIC TRADING STRATEGIES FOR EMERGING MARKETS: EVIDENCE FROM ESG-FOCUSED STOCKS IN BORSA ISTANBUL
Abstract
Today, algorithmic trading (AT) plays a crucial role in financial forecasting. This study explores AT strategies for an emerging market, Borsa İstanbul (BIST). Analyzing Environmental, Social, and Governance (ESG)-focused stocks from the BIST Sustainability Index, a robotic trading algorithm implemented in C# optimizes trading parameters for return. Key technical indicators; Relative Strength Index (RSI) and Simple Moving Average (SMA) evaluate trends and improve decisions. Results show longer timeframes achieve higher profitability, while shorter intervals face volatility. The study underlines the potential of tailored AT strategies in emerging markets, offering insights for small investors to manage risk and return. Findings emphasize the role of local market dynamics in building robust, algorithm-driven trading solutions.
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