Empirical Research On The Trend-Following Trading System Of Stock Market For Medium And Small Investors

Investors are the fundamental part of the securities market development. In any stock market, medium and small investors play as a very significant role. In order to really establish a rational and rational investors and the market, only the development of institutional investors is not enough, it must insist on the protection and nurturing of small and medium investors. In recent years, however, when individual investors buying and selling stocks trading decisions enacted by the yield is very low, many people in the stock market do not make money but have a long period of loss. Based on this, to enhance decision-making system for small investors to invest in research and development of securities markets to develop rational investors is of great significance.A scientific investment decisions ultimately need to implement to three issues:the entry point, exit point, fund management. System trading method gives a complete solution to this, and because of its advantages and psychological control favored by the market. With the continuous development of financial markets and investors mature, system trading approach has become mainstream in Western countries of investment. It is expected the system transaction in the future of China's financial markets will have a huge space for development.The establishment of trading systems have different ways of thinking, this paper discusses the concept and established based on trend-following trading system optimization, testing and use. This paper first reviews the domestic and foreign scholars on trade theory, the theory of trading systems and research results. Then a detailed description of the establishment of trading systems and their optimization, test strategy steps. Then select three different forms of trend-following trading system set up in Shanghai and Shenzhen stock portfolio randomly conduct an empirical study. Studies have shown that, after a series of scientific and effective steps to establish a trading system in China's stock market to obtain the relative stability of income.It is anticipated that many of the characteristics of a trend trading system to follow the financial markets in the future be large-scale applications, the system not only to the investment decision-making and trading a lot of changes, but also a profound impact on the market structure, and to bring the regulatory to a series of challenges.