Research On Trading Strategy Based On Trend Tracking Concept

The trend-following trading concept is a well-known and successful trading concept in foreign countries.Countless successful traders have used it to obtain huge profits from the market.Programmatic trading is a product of the information age.With the development in recent years,it has become very common abroad.However,due to the late start of China’s securities market,programmatic trading is in its infancy.Programmatic trading is an analysis and trading model that is independent of the judgment of individual traders and is used to control related trading signals and quantify corresponding risks.Programmatic trading selects some quantifiable analysis methods to form trading strategies.Trading strategies are programmed and run automatically on the computer.Programmatic trading application areas can be arbitrage trading,trend tracking trading,and so on.Based on the discussion of different investment ideas and different investment analysis methods,this article selects the trend-following trading concept,designs the trend-following trading strategy,and programs the strategy.It uses the historical market to backtest and optimize the designed trading strategy,and finally uses The out-of-sample data empirically tested the strategy,and finally obtained a trend-following trading strategy that can be used in actual combat.The empirical test results found that the trading strategy can well reflect the idea of the trend tracking concept,and further prove that the trend tracking concept is a very effective guiding idea for investors.Based on this concept,combined with different technical analysis methods,A variety of trend-following trading strategies suitable for all types of investors can be developed.Through the above process,this article completely shows the development and optimization testing process of a profitable trading strategy,which is worthy of reference for other investors.