Empirical Research On Quantitative Stock Selection Based On Technical Indicators

Based on the domestic stock market trading system of T+1 and 10% rise and fall,there has been a special investment strategy and capital strength in the market,but people often lack an objective basis for judgment,so that they catch up with the high hold up and suffer heavy losses.In this paper,we want to select representative operable indicators for analysis from the common classification of technical indicators,and to find common features through large data back-testing in the past three years,in order to build a technical quantitative model for the trading floor to achieve greater success.In this paper,the content is mainly divided into five parts.The first part makes a brief judgment on the changes of China’s stock market in 2018.The judgment results show that Chinese investors should pay special attention to the right stock selection,and quantitative strategies can better help select the right stock.Therefore,this paper chooses the topic of quantitative stock selection empirical research based on technical analysis.The purpose of this paper is to construct a technical index model with greater success by studying the trend of the late period of the price limit.By listing the research framework,research methods,research innovations and shortcomings of this paper,we can clearly lay an important foundation for the model empirical research in the future.The second part introduces the development of quantitative stock selection with technical indicators at home and abroad in recent years by citing the literature review at home and abroad.In addition,the classification and advantages of technical analysis are briefly summarized.In the third part,the author elaborates on the definition of five kinds of index models in technical analysis,including MA,CCI,CR,OBV and EMV.At the same time,the calculation formulas,calculation methods,application rules and selection criteria of these five kinds of index models are elaborated in detail.Although these five kinds of index models have their own characteristics and differences,in the following empirical research,these five kinds of index models will be applied by the author to study the selection of quantitative models of stock price limit.In the fourth part,based on the previous exposition of the five indicators model,the author uses the historical data of 2016-2018 to optimize the winning rate of the five indicators: MA,CCI,CR,OBV and EMV on the 20 th and 10 th day.By comparing with the original winning rate,the author finds the winning rate of the five indicators.The optimizations are different,and the winning rate will have different results when the coefficients are limited.Finally,the author synthesizes the above five indicators and carries out various combinations to find a quantitative stock selection model which is more successful than a single indicator.In the fifth part,based on the results of previous empirical studies,the author believes that using technical analysis indicators to quantify stock selection trading can achieve a better winning rate than subjective trading,and help investors avoid speculative losses in the actual war.At the same time,the author also analyzed the problems and shortcomings of the model.