Three Principles of Quantitative Investment in the Recent Market

In the face of a continuously volatile market in recent times, most investors will encounter three situations during their operations: first, guessing the position, guessing where the market will rebound next, and where the market will experience significant volatility; The second is to look at the ups and downs, and judge one's position based on the daily market fluctuations; The third is to wait for the direction. At this position, the market continues to fluctuate, and many people do not know how the market will go next. Therefore, some people simply wait for the direction of the market to be clear before operating.

As for quantitative investment, the operational strategy at this position is completely different for most investors. As a Bor user, we also adhere to the three principles of quantification in this position. That is:

Principle 1: Do not pursue heights
Because it's not worth chasing high in such a market. You can open the Shanghai Composite Index and follow it from this year4month7Solstice2month11The dominant momentum data between the dates showed signs of continuous profit taking dominance in the market, indicating that the nature of funds behind the market's rise has changed. It is reasonable for the market to experience significant fluctuations afterwards. At the same time, although there has been a recent rebound in the market, the overall strength of the bullish momentum during the rebound has not been amplified. I have gained a clear understanding of the changes in the nature of funds in the market and the overall state of the market.




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.

Principle 2; Look at kinetic energy
While not chasing high, we will also monitor the dominant momentum data of the market and individual stocks. And when we look at the dominant momentum, it's not just about the number of days it takes to go long, but also about the strength of the dominant momentum going long. Only stocks that continue to increase their long days and strength are safer to hold or operate in the near future. As for the recent dominant momentum data of the active Xiong'an sector in the market4At the beginning of the month, the overall bullish momentum continued to increase. This indicates that the sector is in a strong band position. However, during the recent launch process, the strength of the sector's bullish momentum has weakened.




Principle three; Grasping earthquake storage
Faced with stocks that continue to increase in both long days and strength, we will use dominant momentum data to seize opportunities for mid day consolidation and market washing of these stocks to intervene. Because this strategy of not chasing high prices and seizing opportunities for consolidation and market washing carries much less risk compared to more small and medium-sized investors blindly pursuing high prices in the market. Moreover, Boer users have a unique method of judging whether individual stocks have shown signs of volatility by focusing on the dominant momentum data and observing whether there is a "double green and blue" characteristic during the volatility process. Recently, opportunities similar to individual stocks have been constantly emerging in the market. As a Boer user, you can lock them in through the "Shock Statistics" function below the system.
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.