New stock selection strategy triples returns in Hong Kong market!
The article presents a strategy for selecting stocks in the Hong Kong market based on stock price dynamics. Researchers used a model to predict stock returns and the likelihood of price reversals by analyzing daily stock prices. By calculating the uncertainty of each stock, they developed a trading strategy that involved buying stocks with rapidly increasing uncertainty and holding them for a specific period. The strategy resulted in a high overall return rate of 138.68%, an annualized return rate of 80.87%, and a maximum drawdown of 23.49%. This approach provides a new investment technique for investors and professional funds to potentially earn higher returns in the stock market.