Research On The Stock Exchange Model Of Shanghai And Shenzhen Stock Markets Based On Adam Theory

“Measures for the Registration of Private Investment Fund Managers and Filling of Private Investment Funds” went into effect on February 7,2014.Compared with Securities Public Funds,Securities Private Funds are small in scale,weak in market influence,limited in raising objects,and have extremely high demand for absolute returns and risk control.Moreover,Securities Private Funds are more flexible in investment approach,position control,proportion of ownership and strategy secrecy.Traditional investment strategies which are based on Standard Finance often reduce risk control over Securities Private Funds.Momentum investment strategy of Behavioral Finance and The Right Side of the Trading Rules have effective control over Securities Private Funds.However,there is no analysis method from theory to practice.This study is conducted to introduce a suitable trading strategy for Securities Private Funds based on Adam Theory by J.Welles.Wilder as the core by the methods of designing Adam index on the basis of Behavioral Finance and supplementing the Right Side of the Trading Rules.Firstly,this paper presents Heterogeneity Analysis Method based on Adam Theory and Momentum Trading Strategy.Secondly,this paper classifies market participants with different influence in accordance with the two-way train model of Adam Theory,and designs.Adam index aiming at the defects of the traditional technical index and the required conditions for the application of Adam Theory.Thirdly,on one hand,this paper selects investment targets with the multi factor stock model and predicts the fund manager's trading decision with the judgement measure of sixteen kinds of combination model of Adam index and price designed by this study under the judgement condition of two exact repeated models in Adam Theory applying into the six basic trends models deduced by this research.On the other hand,this paper sets the position control of the fund manager according to the Adam index judgement of strength direction and chip distribution power.Fourth,to solve the problem that Adam index and all technical indexes have no defence capability against news,this study designs two game models applied in the special condition of news release to realize the longest period of stock holding under the risk control,reduce investment risk,increase the success rate of investment,obtain greater absolute returns and eventually build complete operation model based on Adam index as a core.At last,this paper summarizes the Adam index and prospects the development potential of Adam index.