Decision Support Systems Applied to Online Trading

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Decision Support Systems Applied to Online Trading
By Rosaana Pérez
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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 managers
  judgment
• To provide information and models
• DSS is the most effective solution to the
  semistructure decision problem

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DSS Applied to Online Trading

• Online Trading
• Internet
• Individual Investors
• Online Brokers
• Online Trading

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DSS Applied to Online Trading

• Architecture of a DSS for Online Trading
• The goal of DSS

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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

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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

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Financial information of a company extracted by a
DSS
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DSS Applied to Online Trading

• DSS generates buy/sell recommendations

Technical Analysis indicators
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DSS Applied to Online Trading

• A more clear example

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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)

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E-Signal
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CyberTrader