On The Trend Trading And Fund Management In The Short And Medium Term Investment Story

Trend plays an important part in the short and medium term investment field. Dow Theory and the Wave Theory are the core theories in the trading system. The general definition of trend was first put forward by Robert D. Edwards and John Magee. Perry Kaufman gave the definition of the adaptive moving average. From the classification of trading strategies to trend trading model, the majority of investors in our country are not familiar with these theories. Domestic research focuses on the introduction of advanced exchange concept and trading strategies, as well as the mature operation mode. But the domestic market is full of speculation atmosphere. Investors lack the transaction method in the short and medium term investment strategy. Based on the mature trader strategy in the international capital markets, this study tries to explore the short and medium term trading strategies that are suitable for the domestic investment operation. Through the literature research, data analysis, case analysis and other methods, this essay quantitatively analyzed Dow Theory, the Wave Theory and other popular strategies of capital management and drew the conclusion. The research on trading strategies improved Dow Theory and the Wave Theory, gave a new definition of these theories, and applied them to the transaction. These strategies reduced the investment risk in the actual operation and enhanced the long-term stability of the realization of benefits.This essay tries to solve the following theoretical problems: Establishing the core investment philosophy with Dow Theory as the core, the Wave theory as the guide and capital management as the supplement; building trend trading strategy models through analysis and complement of the blind areas in the previous theories.1. The definition of Trend. Dow theory does not give us the definition of Trend. According to the understanding of the author, the essay defined the Trend as prices in the selected period, unable to break through the trend line and no breakthrough trend channel region called the Trend.2. Setting the technical index analysis trend. There are two indexes as analysis tools in Dow theory. These tools cannot be applied to analyzing the problems in our market. So setting the trend line and the trend channel is the analysis tool of trend analysis. A straight line connecting the highest point and any lows before the lowest point in a period of time is called the rising trend line. Trend channel is parallel to the line of the trend.3. The method of counting the waves. Eliot did not give the method of counting waves in his theory. According to the understanding of the author, the essay explained the method of counting waves. From the current K-line started forward to find, find the recent minimum or the highest K-line. Set the K-line as the starting point A, get the first wave. Count waves. If the prices in the upward trend exceed the high point in the former rising wave, then add one wave. These waves are called Advancing Waves. If the price does not fall below the lowest point in the previous adjustment trend, then increased a wave. If the prices in the downward trend surpass the lowest point in the former falling wave, then add one wave. These waves are also called Advancing Waves. Price does not exceed the highest point of the adjustment trend, increase a wave. Set the odd wave as the advancing wave and the even wave as the adjustment wave.The practical problems solved by the study. From the practical point of view, the essay put forward trend trading strategies through the complement and perfect Dow Theory and the Wave Theory, making the theories practical and operable.1. The scientific transaction models based on the short and medium term trading strategies can efficiently analyze the price trend in the short term, and realize the stability of benefits.2. The scientific fund management system can largely reduce the investment risk in practice.