Trading Cloud Computing Stocks Using SMA

As cloud computing adoption becomes mainstream, the cloud services market offers vast profits. Moreover, serverless computing, the next stage of cloud computing, comes with huge economic potential. To capitalize on this trend, investors are interested in trading cloud stocks. As high-growth technology stocks, investing in cloud stocks is both rewarding and challenging. The research question here is how a trading strategy will perform on cloud stocks. As a result, this paper employs an effective method—Simple Moving Average (SMA)—to trade cloud stocks. To evaluate its performance, we conducted extensive experiments with real market data that spans over 23 years. Results show that SMA can achieve satisfying performance in terms of several measures, including MAE, RMSE, and R-squared.