This time the resource call is relatively sufficient, and the model is quite mature, so this traversal only took more than twenty hours.
The results this time were in line with expectations, and the hit rate had increased to 98%.
The meaning of this probability does not mean that the system still has a two-percent error rate, but refers to a two-percent trading opportunity, because the system cannot make accurate judgments and can only give up.
Considering the countless opportunities that appear in the global market in one day, it is no longer necessary to regret giving up this opportunity.
"Do you want to go online?" After getting this result, Li Laosan could no longer sit still.
"Is this just verified the algorithm mechanism, and the transaction trigger mechanism has not been verified yet." Zhou Zhi said, "In this way, first set the transaction at 200 transactions per second, no more than 2,000 transactions per day, and choose one or two votes to experiment."
"Is this... too conservative?" Li Laosan frowned and sobbed: "Do you have no confidence in Xiaomiao?"
"What Zhang Zi said makes sense." Mai Xiaomiao is Zhou Zhi's brainless fan, and it is useless to provoke Li Laosan: "It's right to be cautious and sobbing: "It's right to be cautious." . "
"There are also the choice of stock market and the choice of stocks." Zhou Zhi said: "Although it is a global bull market now, we must also choose stocks with the best growth value and large trading volume to operate. Even if we make mistakes, the transaction can be covered up in a large number of normal trading and not analyzed. The overall rising stocks can also reduce the losses caused by our mistakes." "If this is the case, it is better to try hedging." Li Laosan rolled his eyes.
The so-called hedging refers to a special method, that is, two transactions that are related to market conditions, opposite directions, equivalent quantity, and offset profits and losses at the same time, to ensure that you can still obtain investment returns while reducing business risks.
The so-called market correlation refers to the uniformity of the market supply and demand relationship that affects the price of the two products. If the supply and demand relationship changes, it will affect the prices of the two commodities at the same time, and the direction of the price changes is generally consistent.
For example, stocks and stock index futures of this stock.
The opposite direction means that the buying and selling directions of the two transactions are opposite, so no matter what direction the price changes, it will always make a profit and a loss.
For example, when buying stocks, sell stock index futures, and when buying stock index futures.
Of course, to make profits and losses offset, the quantity of the two transactions must be determined based on the range of their respective price changes, and the quantity is generally equivalent.
Many people will be confused. Since transactions exist at the same time, they will inevitably lose money while making profits. Then isn’t they simply giving the handling fee and not making money?
In fact, this is not the case. There are more ways to make money here.
The simplest and easiest way to hedge money is called "helding settlement".
The so-called hedging settlement means that after the trader sets up positions in the futures market, most of the traders do not end the transaction through delivery, but through hedging settlement.
For example, after buying futures to build a position, you can terminate the performance responsibility by selling the same stock index futures contract; after selling the position, you can also terminate the performance responsibility by buying the same futures contract. Hedging settlements allow investors to end futures trading by waiting until delivery, thereby improving liquidity in the futures market.
Forex hedging is also a good example. In the early 1990s, the Iraq War ended, the United States became the victorious country, the US dollar price also rose steadily, with a strong trend, and rose against all foreign exchange, and only the Japanese yen was still a strong currency.
At that time, the Berlin Wall fell shortly after it fell, and Germany was dragged down and its economy was worried. The Soviet Union was in a state of unstable politics, and Britain also experienced the pound crisis. The Swiss franc's attractiveness as a war refuge after the war also diminished greatly, and they all became weak currencies.
If you buy foreign exchange this is, you only need to sell British Pounds, Marks, Swiss Francs and short the yen at the same time, and you will make a lot of money.
Because when the US dollar appreciates, all foreign currencies will fall, but the degree of decline is different. Others fall sharply, and only the Japanese yen falls the least; in this case, borrow other foreign currency futures and sell them for exchange for yen, and then return them in reverse, which can make a lot of difference returns.
When the US dollar softens and other currencies rise less, the yen will rise sharply. If you borrow other foreign currency futures and sell them for exchange for yen, you can obtain the great profits brought by the appreciation of the yen, and after offsetting the losses that require the rise of other foreign currency futures, you can still earn a large amount of price difference returns.
In any case, as long as hedging this in the market at that time, you will make a profit.
Use this method to avoid the risks brought about by short-term extreme fluctuations and protect long-term interests. Of course, if you even make a wrong judgment on the long-term trend, this method will not save you.
The above is just the original meaning of hedging. Since hedge funds have developed to this day, they can use various trading methods to hedge, transfer, pull-out, and hedge to make huge profits. These concepts have gone beyond the traditional scope of risk prevention and profit protection operations. What Li Laosan refers to is obviously the latter.
"This idea is so clever!" Zhou Zhi gave Li Laosan a thumbs up: "Statistical hedging is especially suitable for our program!"
No mistakes, one song, one content, one in 6, one book, one bar, one reading! "Hey! I'm just talking and having fun!" Li Laosan said, "The statistical hedging income is so small..." "It's better to be small! At least it is a kind of arbitrage, and the single-time profit is not high, which is especially suitable for us!" Zhou Zhi thought about it the more hedged.
Statistical hedging is a way of risk arbitrage. The design idea is to first find out the paired investment varieties such as stocks or futures with the best correlation, and then find out the long-term equilibrium relationship of each pair of investment varieties. When the price difference of a pair of varieties generally refers to the residuals of the cointegration equation, and deviate to a certain extent, you can start building positions - buy relatively undervalued products, short-selling and relatively overvalued products - and when the price difference returns to equilibrium, you can immediately make a profit.
Because this equilibrium relationship exists in a long-term and stable manner, temporary deviations will always return to equilibrium. Therefore, as long as you grasp such a relationship and trade, you will always get profits.
However, if you want to complete such a transaction in the short term, the returns are destined not to be high, and positions are always required, and risks will accumulate into positions risk.
However, when the fund has developed to AXA, it always has to hold positions. For example, Laojiao stocks cannot be sold all of them, because it also involves the power to support Xiao Liujie as the independent director of the factory, etc. Therefore, for many products owned by the fund, the risk of holding positions is there. For these stocks, you only need to consider hedging returns.
After Zhou Zhi's explanation, Li Laosan was relieved. Now hedging the system. Therefore, playing with statistical hedging on several stocks with more fund holdings is completely stable and does not attract much attention. "Then it's what you said!" Li Laosan finally agreed to Zhou Zhi's plan. Several people discussed for a while and decided to use three stocks of Microsoft, IBM and Oracle to try it out. (This chapter ends)