The Application Research Of Investment Strategy Of China Futures Private Fund

After more than 20 years'development, the China Futures market has formed a mature market system which contains the exchanges, futures companies and investors. The exchanges include Shanghai Futures Exchange, Zhengzhou Commodity Exchange, Dalian Commodity Exchange and China Financial Futures Exchange. There are more than 160 futures companies exist in China nationwide. The companies are mainly focus on brokerage, investment consultation and asset management business in order to offer investors from futures market with professional services. At the year of 2010, the total trading volume of China futures became the world's No.l at the first time ever. Moreover, the price influence of China futures has became more widely, and the economy function of futures price discovery and hedging has emerged; as a results, it attracts large amounts of organizations and investors to join into the market.However, the mechanism of futures exchange has determined that futures investing is a highly risk investment and most of investors suffer a loss from the investment. Because benefits from using professional investment strategy, the futures private fund has earned steadily profits. First of all, this paper will start from discussing the investment strategy which is the vital point of investment; researching the decision on choosing the investment strategy; exposing how to construct its speculation strategy, arbitrage strategy, quantitative investment strategy and portfolio investment strategy by the futures private fund; presenting a rational list of investment elements such as fund management, risk control and earnings target; and therefore, controlling potential risk and earning profits with a steadily pace. The research indicates that different investment strategy apply to different investor and market level.Secondly, the author of the paper based on the example of the Fushan fotures investment strategy, which includes Zhiyuan series, Youxiang series and Anxiang Series, to illustrate the characteristics of series'risk returns. Meanwhile, the author analyses how to construct the Zhiyuan series CTA investment strategy, and presents a deeply understanding of private fond investment strategy and a rational decision of choose fotures private fond to investors.In conclusion, the author of the paper anticipates the development trend of foture investment strategy and challenges that the fotures private fond will be faced. Also, the author offers suggestions to deal with the challenges and solutions to solve the problems.