The role of quantitative data in risk control

The topic discussed in today's article, although somewhat unpopular, is very relevant. Not only because there is no market that only rises but not falls, but also because there have been significant fluctuations in the market recently. Quantitative data has its own advantages in seizing individual stock opportunities, and also has unique advantages in risk control. Today, let's focus on discussing how to use quantitative data for risk control.

Firstly, I would like to clarify a fundamental difference between quantitative investment methods and traditional methods in determining the trend of individual stocks. Because traditional methods rely more on combining moving averages with trading volume to determine trends, while quantitative investment focuses more on the changes in dominant momentum in this regard. By monitoring the nature of funds, we can assess changes in market, industry, and individual stock trends. Especially in the face of a continuously rising market, although sometimes people may feel that adjustments may come anytime and anywhere, if they really wait for the market to adjust before controlling positions and risks, it may be too late.

Today, we would like to introduce to you some of our old users of Bor the methods of using quantitative data to control risks. When facing continuously rising stocks, we should not guess where the height of these stocks is and where they will rise. We only need to keep an eye on the changes in the dominant momentum data. Generally speaking, as long as the dominant momentum remains red and yellow, it indicates that the trend of the stock's band has not been completed. At this time, individual stocks can consider continuing to hold in the band. And if some of our experienced Boer old users are doing short-term work, at this time, under the premise of heavy positions and abundant profits, we can wait until the yellow profit taking funds appear to control our positions appropriately. After all, no one knows when green short selling funds will dominate in individual stocks. Once profit taking funds dominate the market, we can know that the nature of the funds in the individual stocks behind the rise has changed, and profit taking led gains are often unsustainable. At this time, we can take advantage of the emergence of profit taking funds (which may occur when the stock price is still rising) to appropriately reduce positions and control positions. When the short selling funds start to dominate the stock price, it is possible that the stock price has already experienced a significant decline. Of course, after being dominated by profit taking, it may also follow the trend of long funds leading to a continued rise in stock prices. At this point, it depends on whether you are operating in the band or in the short term. If you are operating in the short term, you can control your position under the premise of heavy profits and high profits; And for band operations, profit taking can be ignored and positions can be made after the nature of the funds changes.

Important note: By adding“bull591”By adding Bor's official WeChat account, you can timely understand the quantitative data of the market industry and individual stocks, and also check the changes in individual stock data.




So with dominant momentum data, not only can we use this data to identify the stocks with dominant long behavior and the strength of their long positions, but we can also effectively control risks through dominant momentum data. This is the method of using quantitative data of funds to control risks. Perhaps by the time you read this article, the market is already in the4month7Day10Rihe11There was a significant fluctuation after consecutive profit driven days. But the next time this kind of capital dominance occurs, once you have a clear understanding of Bor's quantitative data, you can control your position appropriately in advance, be prepared for any future risks, and be prepared in advance.

Important note: By adding“bull591”By adding Bor's official WeChat account, you can timely understand the quantitative data of the market industry and individual stocks, and also check the changes in individual stock data.