7.9 End of Chapter Exercise

1. Evaluate the following EMA based day-trading rule: for each day
   • Buy under buy signal
   • Short sell under sell signal
   • trading size: all in

where - Buy signal arises if short-run EMA > long-run EMA - Sell signal arises if short-run EMA < long-run EMA - buying and short-selling positions are liquidated using closing price of that day

2. Evaluate the following EMA-RSI based day-trading rule: for each day
   • Buy under buy signal
   • Short sell under sell signal
   • trading size: all in

where - Buy signal arises if short-run EMA > long-run EMA - Sell signal arises if 14-day RSI < 50 - buying and short-selling positions are liquidated using closing price of that day