Today I will tell you about the automated robots of the exchange.
[This article is organized by mkz888z]
What is included in a complete LH strategy?
A complete strategy needs to include input, strategy processing logic, and output; strategy processing logic needs to consider factors such as stock selection, timing, position management, stop-profit and stop-loss.
Stock picking
Stock selection is to use the LH method to select a certain investment portfolio, hoping that such an investment portfolio can obtain investment returns that surpass the broader market. Commonly used stock selection methods include multi-factor stock selection, industry rotation stock selection, trend tracking stock selection, etc.
1 Multi-factor stock selection
Multi-factor stock selection is the most classic stock selection method. This method uses a series of factors (such as price-earnings ratio, price-to-book ratio, price-sales ratio, etc.) as stock selection criteria. Stocks that meet these factors are bought, and those that are not satisfied are bought. Sell. For example, value investors like Buffett will buy stocks with low PE and sell stocks when PE returns.
2 Style rotation stock picking
The style rotation stock selection is to use the characteristics of the market style to invest. The market prefers large-cap stocks at a certain moment and small-cap stocks at a certain moment. Big gains.
3 Industry Rotational Stock Selection
Industry rotation stock selection is due to the economic cycle. After some industries are launched, other industries will follow the startup. By discovering these following rules, we can buy the latter to obtain higher returns after the former is launched. Different macroeconomic stages Under both the monetary policy and the monetary policy, industry rotation characteristics with different characteristics may be produced.
4 Capital Flow Selection
The flow of funds to select stocks is to use the flow of funds to determine the trend of stocks. Buffett said that the stock market is a voting machine in the short term, but it must be a weighing machine in the long run. The transaction of short-term investors is a voting behavior, and the so-called votes are funds. If money flows in, stocks should rise, and if money flows out, stocks should fall. Therefore, corresponding investment strategies can be constructed according to the flow of funds.
5 Momentum reversal stock picking
The momentum reversal stock selection method is a portfolio constructed by using the characteristics of investors' investment behavior. Soros's so-called reflexivity theory emphasizes that the positive feedback effect of price increases will cause investors to continue to buy. This is the basic basis for momentum stock selection. The momentum effect is that stocks that were strong in the previous period will continue to be strong in the future. When the positive feedback reaches the unsustainable stage, the price will collapse and return. In this environment, there will be reversal characteristics, that is, stocks that were weak in the previous period will become stronger in the future.
6 Trend Following Strategy
Buying when the stock price shows an upward trend and selling when there is a downward trend is essentially a strategy of chasing the rise and killing the fall. Many markets have more trends due to the utility of the herd. If you can control it If you are good at losing money, if you insist on capturing the trend, you can get extra income in the long run.
Timing
Timing refers to the use of LH to determine the buying and selling points. If it is judged to be up, then buy and hold; if it is judged to be down, then sell and clear the position; if it is judged to be a shock, then sell high and buy low.
Commonly used timing methods include: trend timing, market sentiment timing, effective capital timing, SVM timing, etc.
Position management
Position management is the technique of deciding how to enter the market in batches and how to stop profit and stop loss when you decide to invest in a stock portfolio.
Commonly used position management methods include: funnel position management method, rectangular position management method, pyramid position management method, etc.
Take Profit and Stop Loss
Take profit, as the name implies, sells stocks in time when gains are made to gain profit; stop loss, sells stocks in time when stocks lose money, to avoid greater losses.
Timely stop-profit and stop-loss is an effective way to obtain stable income.
Strategy life cycle
A strategy often goes through several stages of generating ideas, implementing strategies, testing strategies, operating strategies, and strategy failures.
Generate ideas
Anyone can generate a strategic idea at any time, which can be based on his own investment experience or the successful experience of others.
Implementation strategy
The biggest leap from idea generation to realization strategy, the realization strategy can refer to the above-mentioned "What is included in a complete quantitative strategy?"
Inspection strategy
After the strategy is implemented, it needs to pass the backtest of historical data and the test of simulated trading, which is also the key link before the real market, to screen high-quality strategies and eliminate inferior ones.
Real trading
Invest funds, pass the market to test the effectiveness of the strategy, take risks, and earn profits.
Strategy failure
The market is ever-changing, and the effectiveness of the strategy needs to be monitored in real time. Once the strategy fails, the strategy needs to be stopped in time or further optimized.
Many people are attracted to the market through the promise of easy money making through automated trading robots or expert advisor trading strategies. Or a trading robot is an automated trading program that can run on your computer and trade in your account. Online sales robots have become a huge business, but before you take action, you need to consider whether your strategy can make you profitable.
[This article is organized by mkz888z]