RolzieInvestment

  I've been reading Professor Jiang Tao's book "Investment Psychology" lately. The multi-cycle resonance method he used helped his friend Niu Hai achieve a 20-fold return in a single month. Let's take a look at this strategy. I'll also share how to use the multi-cycle resonance method with two of my own A-share holdings. These are some notes I wrote. The figure below is the summary of AI. Indicators such as (YUAN-D) should be Professor Jiang Tao’s own and can be ignored for now. ① Large-Scale (Weekly/Daily) → Determine Trend Direction Pattern: The overall trend must be upward Bollinger Bands: The candlestick chart must be on the outer edge of the Bollinger Bands (the further out, the stronger) Moving Average: The outer edge of the MA15 is more effective Angle: 45° (Upward) → Strongest Trend Indicator Confirmation: KD and MACD are upward ② Daily Level → Confirm Trend Establishment SAR Indicator: Supports the upward trend ③ Hourly Level → Medium-Scale Confir...

 In July this year, I was studying Prof. Dharmadharan's valuation course, and one of the models that is slightly simpler than DCF is multiple linear regression, which has also been confirmed to be true and usable in the Chinese A-share market. This model is simply to use a basket of stocks, such as (bank etf) of various indicators, to find out the linear relationship between the independent variable and multiple dependent variables, for example, suppose the dependent variable is PB, independent variables are PE, ROE, the bank's non-performing loan ratio. This will give us a regression equation. For example PB = a + x* PE + y ROE + z NPL ratio of banks. With this we can substitute PE, ROE, NPL ratio of individual stocks to get a predicted PB, if the predicted PB is lower than the current PB then it means currently undervalued. Below I will combine python code, and Prof. Dharmadharan's course, together with a detailed look at this method. You are also welcome to discuss wit...