Study On Investment Trading System Of ETF Fund

This paper combines the trading systems with ETF funds bases on the introduction of ETF funds and research of trading systems, thus the investors of the ETF funds can form a good trading habits and solve their own emotional puzzle in a certain degree, and prompt the process of trading strategy even more sequencing,publicize and rationalization, as a result, the investors have a favourable balance on profit of efficiency market.At first, this paper describes the concept, historical development, characteristics and advantages and investment risks of the ETF fund. Secondly it introduces the same items above of investment-trading system. This paper analysis the three elements of the ETF fund trading system bases on the theory above mentioned. The first element is the selection of strategy mode, it means a simple asset allocation strategy of selection market winner; The second element is the price forecasting and trading strategy mode constructed by a three-layer ferry-net trading system; the third element is the fund management model, to determine the investment position according to the proportion held, two percents control the risk of single transaction, six percents avoid continuous loss of three layers control the fund management of ETF fund investment, in order to build a trading system tit for the ETF fund. At last, as an example of achievements date of the trading system investment in small-plate ETF fund, the author verified the ETF fund investment trading system constructed on this paper during the early 2009 to 2011. and proposed some items should be considered when using ETF fund invest in trading system.