Sun Fu: Steady profits require knowledge of capital management and great patience

Sun Fu has more than ten years of real trading experience in the investment market, and has flexibly used a variety of trading strategies in the secondary stock market and futures market to manage and operate large-scale funds for a long time.

Full text of the interview

Futures Asset Management Network: Hello, Mr. Sun, thank you for taking the time to accept the interview with Futures Asset Management Network despite your busy schedule. When did you enter the futures market? What kind of twists and turns have you experienced? When did you start embarking on the path of quantitative trading?

Sun Fu: Hello, I am honored to be interviewed by Futures Asset Management Network. I started entering the futures market during the 2008 financial crisis, and I had been doing stocks before. When I first entered the market, I brought the bad habit of stock trading into the futures market, and started trading heavily. Of course, the result was huge losses, but this also taught me the importance of fund management in the futures market. This is what I still think of in the futures market. The most important thing for long-term survival. Then for quantitative trading, I have been studying it since 2009, and I am still learning it today

Futures Asset Management Network: When did you become profitable? What skills and qualities do you think traders need to have to make steady profits?

Sun Fu: It started to make profits in 2009, and only 11 years in between were losses, while the rest of the years were profitable. The most important skill to achieve steady profits is to understand how to manage money, and then have a strong heart, which can not only withstand tremendous pressure, but also require great patience

Futures Asset Management Network: Your Products The Shenwan-Fuya Tianyou Asset Management Plan has been solidly realized since its launch. What concepts and principles are you basing your quantitative strategy system on?

Sun Fu: This plan is my first official product, a trading strategy designed to achieve stable profits.

Futures Asset Management Network: How many strategies have you configured? How long is the trading cycle of the strategy? Why do you do this configuration?

Sun Fu: Multi-period, multi-variety and multi-strategy allocation of major domestic contracts. The trading cycle includes intraday minute-based trading and longer-term fundamental-based trading

Futures Asset Management Network: What are the priorities of your strategies in the two different periods of trend and consolidation?

Sun Fu: The trending market is the biggest weapon for futures, so the trending market will generally adopt the method of profit-adding to obtain a higher return-to-risk ratio as much as possible. During consolidation, multi-type hedging will be the main method. , focusing on controlling risks as much as possible.

Futures Asset Management Network: How often do you think strategies should be optimized or updated in quantitative trading? How to judge whether the strategy has failed or is temporarily in the profit-taking stage?

Sun Fu: Nowadays, everyone is making rapid progress, so it is difficult for a single strategy to survive in the current market for a long time. Therefore, we will continue to test and research new strategies. The combination of multiple strategies and proper fund management should be a better way to control profit taking in the future

Futures Asset Management Network: Do you think it should be How to evaluate the merits of a set of strategies and what evaluation indicators should we pay attention to? Based on your research experience, what are the pitfalls when developing programmatic strategies that should be paid attention to?

Sun Fu: The profit-loss ratio of the strategy and the market liquidity that the strategy can accept. There are many strategies that can achieve high yields, but they are not applicable when the amount of funds is large. This is a hurdle for many futures private placements and needs to be considered.

Futures Asset Management Network: Your Quantitative Strategy Mainly for stock index futures, what are the similarities and differences in your strategies for the new index futures that will be launched soon? < /p>

Futures Asset Management Network: We know that you focus more on stock index futures. Compared with commodity futures, what do you think will be the quantitative difference? Will you also participate in commodity futures trading in the future?

Sun Fu: The liquidity of futures index is the best, so the capital allocation will be relatively large. Commodities are more suitable for trend trading under large-cycle multi-variety combinations based on fundamental research.

I have also configured 20 commodities on my product

Futures Asset Management Network: What is your view on portfolio investment? What do you think is the biggest benefit of portfolio investment? Divided into major categories, variety combinations, strategy combinations, and cycle combinations, have you done research and actual testing?

Sun Fu: It is very important. From the perspective of risk control and fund management, multiple combinations are the direction of future research and development

Futures Asset Management Network: Your Funds What are the management principles? What is the general range of position control? Are there separate strategies for adding and reducing positions?

Sun Fu: The basic principle is to increase positions with profits and reduce positions with losses. Of course, corresponding adjustments will be made according to market conditions. The position is generally around 20%-30%. The specific situation depends on the real-time volatility of the market. Position setting

Futures Asset Management Network: Do you think quantitative traders still need to care about fundamental information? Have you tried the strategy of quantifying fundamental information into indicators? What is the effect?

Sun Fu: Yes, a good opportunity is the moment when fundamentals and technical aspects intersect. We attach great importance to the study of fundamentals. We are studying this area, and we will know the effect by looking at the performance of our products in the future

Futures Asset Management Network: How do you balance "return" and "risk"? What is the maximum drawdown of your acceptable returns?

Sun Fu: My personal account may be able to withstand a relatively large drawdown, such as 30% or even higher; for products, we will consider the risk needs of customers and initially control the product within 10% Retracement

Futures Asset Management Network: Mr. Sun, could you please introduce your team and your plans for the future development of the company?

Sun Fu: In addition to stabilizing profits and expanding the scale of fund management, we will also involve multiple trading markets, such as the domestic stock market, Hong Kong market and overseas markets. We hope to achieve certain success in the global market in the future. score.