Analysts' risk management and trading methods
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Analysts' risk management and trading methods
This analysis method breaks through the only idea of paying attention to the trend of the stock itself in the transaction, and pays more attention to the management of account funds. In essence, it is also a concept of financial management
This analysis method breaks through the only idea of paying attention to the trend of the stock itself in the transaction, and pays more attention to the management of account funds. In essence, it is also a concept of financial management. In the transaction, it can adopt the methods of warehouse division and combination; With the expansion of capital scale, establish a fund portfolio buying strategy that can automatically trade, and effectively use stop loss, stop win and other strategies to continuously optimize the trading strategy, so as to establish an effective risk management trading strategy.
1、 Risk management transaction strategy process:
In essence, risk management trading strategy is a way to effectively combine the trading strategy of funds with the trading method of stock system. It pays attention to the following aspects:
1. Overall position control
Position control refers to how much capital they invest to trade. That is, the stock market value in the account / (stock market value + bond market value + cash) * 100%. Generally speaking, the most effective way is to invest according to the risk of the market, that is to always pay attention to the trend changes of the market, and compare the stock trend with the excess return of the market to determine the size of the position. For example, if the current market risk coefficient is 70%, then the position should be 30%.
2. Choice of transaction method
This stage is to select a specific trading strategy to enter the market, such as using the automatic trading signal sent by a certain index, or a trading strategy whose internal value is lower than the market average according to a certain fundamental value, which can be one trading strategy or several trading strategies. In our risk management strategy, we must pay attention to the certainty of the trading strategy, that is, we can not use a certain ambiguous method to describe the trading strategy. Only the deterministic trading strategy can lay the foundation for us to establish an effective trading strategy. For example, here we choose a trading strategy, that is, oversold large cap stocks. For the so-called oversold, we must clearly define its oversold as bias less than - 6, and the so-called large cap, that is, the flow of more than 200 million stocks.
3. Choice of capital market entry strategy
After choosing a trading strategy, we must choose trading funds, such as how much we invest when such signals appear. You can enter the whole position or buy in batches. You can use the capital trading strategy, pyramid or inverted pyramid strategy. Similarly, such trading strategy must be clear and accurate. For example, for the above trading strategy, we adopt the inverted pyramid trading strategy. Each time we send such signals, we invest 50% more money than last time,
4. Selection of trading strategy
Trading strategy is the most important link in risk management, and it is also an effective way to prevent capital risk, that is, the usual stop win and stop loss strategy. By stopping winning, we can effectively protect profits and minimize losses. At the same time, we should also see that time is also a valuable resource for us. Therefore, when a trading strategy cannot be issued for a long time, we can also adopt abandonment strategy.
5. Selection of combination
That is, the number of stocks held and the proportion of each stock are closely related to the size of funds, investment strategies and the types of investors. Generally speaking, risk aversion tends to adopt index investment strategies, while risk enthusiasts like to focus on a hot plate and a type of plate. Obviously, the above investor is a risk averse person. Therefore, he adopts the market oversold stocks. Therefore, when choosing the portfolio, he generally tends to adopt the index strategy, that is, he chooses to invest in as many stocks as possible within the scope of funds.
2、 Key points of risk management transaction method
Compared with blind trading in the past, capital trading strategy is a strict and systematic trading strategy. It pays attention to both trading methods and capital strategy, but it also has strict trading regulations:
1. Trend: that is, the position selection must be consistent with the market;
2. Accuracy: no matter the trading method or capital strategy, there must be a strict quantitative description, which is by no means an arbitrary trading strategy;
3. Discipline: once the trading scheme is established, it must be strictly implemented;
4. Consistency: the selected trading strategy and combination mode must be consistent with the risk assessment;
5. Integrity: the trading strategy is a very complex trading method. At the same time, it pays attention to the trading method and capital strategy. Therefore, when formulating the scheme, it must be strict, careful and complete, otherwise one move will be invincible and the full market will be lost.
Let's look at the effect of the capital trading method we specified above. We can see that before using the capital trading method, the winning rate of the trading method was only 51% and the annual return was - 0.31%. After adopting the capital trading strategy, the winning rate has increased to 68% and the annual return is 3.28%. Our capital trading strategy has achieved remarkable results.