Analysis Of The Simulation Effect Of Grid Trading Method For Stock Index Products Of Fund Companies

The economic achievements of China’s reform and opening up over the past 40 years are inseparable from the establishment and development of the capital market,for the healthy development of the capital market is of great significance to maintaining the steady growth of the economic aggregate,promoting the continuous optimization of the economic structure,and promoting the reform of the economic system.In order to give full play to the function of the capital securities market serving the high-quality development of the real economy,institutional investors such as fund management companies must rely on the combination of scientific investment theories and optimized trading strategies,when constructing various portfolio products.Therefore,the research on investment theories and trading strategies also plays an important role in the healthy development of the capital market.As an important part of the capital market,China’s stock market has been subject to sharp fluctuations in the long run.In addition,most traders tend to adopt short-term trend trading strategies,which further renders the performance and the long-term stable returns of securities investment fund companies to fluctuate wildly.However,the grid trading method is suitable for volatile markets.Therefore,based on the historical data of the Chinese stock market index,this thesis conducts a simulation study on the application effect of the grid trading method by taking the HS fund company as an example.Firstly,this study investigates the theoretical basis of grid trading method,analyzes the characteristics of grid trading method,and designs the model of grid trading method.Secondly,this study organizes the historical transaction data and then designs a simulated trading program.Finally,after selecting historical data for a period of time as a training set to obtain the optimized trading parameters and selecting historical data for another period as a back-testing set to test the effect of the grid trading model and parameters,a comparative analysis is made and some conclusions and prospects are drawn accordingly.The results show that based on the characteristics of long-term fluctuations in the domestic stock market,if fund companies use the grid trading method in stock index trading,they can obtain excess returns,reduce performance fluctuations and risks,enrich product strategies,and rationalize trading behavior.At the same time,the grid trading method is also found to be a robust trading method with low risks and low yields and the key parameters for constructing the grid trading method are to set the upper and lower limits of the price and the height of the grid reasonably.Nevertheless,the grid trading method also has limitations.It is suggested to attach great importance to the selection of appropriate trading species,the timing of entering the market,the long-term persistence,the judgements of the market trend,and the exit from market when it is necessary.With the rapid development of China’s capital market and financial technology,it is foreseeable that various trading strategy studies will play a vital role in promoting the development of the capital market and fund industry in the future.