Combined signal approach: evidence from the Asian–Pacific equity markets

Abstract

This article tests the profitability of the Combined Signal Approach (CSA) (Lento and Gradojevic, 2007) in the Asian–Pacific equity markets. The CSA is based on the premise that the consensus agreement of profitable trading signals should outperform any single signal. The results present further evidence that the CSA improves the profitability of individual trading rules and consistently earns profits in excess of the buy-and-hold trading strategy. The significance of the results is tested through a bootstrap simulation.