A Study on the Suitability of Grid Trading Strategies for Quantitative Investment Services Targeting High-Net-Worth Clients at Banks in China—A Framework Analysis Based on Multi-Market Backtesting

Abstract

In the context of the constantly changing global economic landscape and the long-term volatility of the financial market, how to find an investment method that can effectively cope with stock market fluctuations and avoid risks is a topic worthy of study. Therefore, this article selects the quantitative investment data of Bank of China in the A-share market as a case, and selects suitable ETFs for constructing grid trading investment targets from a large number of A-share ETFs. The grid trading method constructed in this article is subjected to backtesting analysis, and its defects are improved. Further, the traditional grid trading and the improved grid trading strategies are backtested and compared and analyzed. The research results show that both grid trading strategies have excellent profitability when investing in the A-share market. Compared with the traditional grid trading strategy, although the improved grid trading strategy lacks a little stability, its income capacity has been significantly improved.