- Jun 12, 2025
- Strategy
In the investment market, identifying trends is key to generating returns. The HSAM platform's Trend Strategy (TS) takes this concept further by employing a rigorous, multi-dimensional screening mechanism and a flexible, efficient dynamic rotation trading strategy to create an investment solution that enables investors to achieve sustained profits in stable market conditions.
The first step of the TS strategy is to build a solid foundation of underlying assets, a process that relies on detailed analysis of patterns, trading volume, and other fundamental technical indicators. In terms of pattern recognition, the strategy team not only focuses on common upward and downward trends but also delves into the trend signals embedded in complex oscillating consolidation patterns. Taking the futures market as an example, when the price of a commodity futures contract undergoes prolonged oscillation and forms a converging triangle consolidation pattern, with trading volume gradually shrinking as the pattern nears its end, this often signals an impending trend breakout. If the price subsequently breaks above the upper trend line of the triangle accompanied by a significant increase in trading volume, the futures contract may be included in the target pool.
Volume analysis plays an indispensable role in TS strategies. It serves as the market's “thermometer,” directly reflecting the market's attention to the product and the flow of funds. During the screening process, the strategy focuses on the relationship between volume and price trends. For example, in the stock market, if a stock maintains relatively stable and gradually increasing daily trading volume during a continuous upward trend, it indicates sustained capital inflows driving the price higher, suggesting a higher degree of trend stability. Conversely, if the stock price rises but trading volume continues to shrink, it may signal insufficient upward momentum, and the stock is unlikely to be easily included in the underlying asset pool.
In addition to patterns and trading volume, other fundamental technical indicators such as Bollinger Bands (BOLL) and Moving Average Convergence Divergence (MACD) also provide strong support for the screening process. Bollinger Bands help determine the price fluctuation range of a product. When the price touches the upper band of the Bollinger Bands and continues to break through, while the MACD indicator shows a golden cross or other buy signals, this further strengthens the basis for judging that the product has a positive trend. Through the mutual validation of these indicators, products included in the target pool are ensured to have high trend stability and investment value.
After establishing the target pool, the TS strategy's dynamic rotation trading mechanism begins to take effect. Market conditions change rapidly, and even products with stable trends may exhibit divergent trends. The strategy monitors changes in various indicators of products within the target pool in real time. Once it detects a weakening in the trend strength of a particular product or identifies another product with stronger trend potential, it swiftly adjusts the investment portfolio, redirecting funds from the former to the latter. This rotation trading is not a blind operation but is based on rigorous data analysis and strategy models to ensure that each transaction adjustment maximizes investment returns while controlling risks.
HSAM's Trend Strategy TS, leveraging multi-dimensional screening and dynamic rotation investment wisdom, selects high-quality investment targets for investors in a stable market environment and captures every trend opportunity through flexible trading strategies to achieve steady asset growth and sustained return accumulation.