Study On Blue-chip Investment Strategy Based On Optimal Control Algorithm

The stock market has experienced more than20years since itsestablishment in China. Nowadays, stock market has become an important partof our socialist market economy, and accounted for a large proportion in ourcountry’s total economy. China has become the second-biggest stock marketafter over two decades continual evolution process. After21stcentury, the stockmarket is tending to mature in the development.At the same time, governmentreduce the state adjustment and interval of market operation at the policy level,and let economic market develop freedom and normally, which provides morechoices for investors when they plan to invest in stocks, but, in the meantime, ofcourse, the difficulty when investors to make decisions will be even greater.Blue-chip stocks relate large amount of funds and a great number ofinvestors. Besides, the movement of grail blue chips affect market trends directly.Meanwhile, investors will pay more attention to blue-chips when they plan toinvest stocks. Hence, study on blue-chip is even more important.The main research work of this paper is as follows:(1) Start from the basic knowledge of stock, elaborating the influence factorsof stock price, and analyzing the major financial data of the public company. Soas to lay a theoretical for later research, which includes selecting financial datawhen grey correlation analysis is applied to analyzing stocks, and stock analysisof the optimal control algorithm.(2) Based on Grey System Theory, select some common-sense indices fromthe financial reporting which released by public company, computes thecomprehensive evaluation result of each stock, and analyze, evaluate, rank single Blue-chip by means of Multi Criteria Decision Theory, compare the pros andcons of the elected stocks, and compare the evaluation results with the actualfact.So as to give investors some decision support. Because there be differencewhen choose financial data indices, the comprehensive evolution results may befor not the same.Moreover,the different selected time slot will result in differentresults,which refers to fitness between the actual risen or fallen and thecomprehensive results.(3) Apply stock price model and Optimal Control Algorithm Theory, thispaper designs a stock price model,in the process of soluting model,based on agiven target function,induce the Hamilton function.In this paper,the variationalmethod and the minimum principle is used to find the optimal control solution ofexpression.In addition,this paper tests and analyzes share price fluctuationsequence, which is probabilistic and random.This paper proposes a new methodto recognize and judge stock by means of comparing ideal increment sequencewith actual fluctuation sequence,and gives ressonable explanation when thedifferences of result are too large.(4) Finally, an empirical study of CFLD, for example, the results show that,there be some deviation between the ideal share price increase sequence and theactual share price sequence, but generally speaking, the result is satisfactory. Theproposed approach has a certain effectiveness and praticability.