[Red Envelope] How to get on board with new themes in the quantitative era? A step-by-step guide to catching the opportunities

Happy weekend! From now on, articles will be updated here regularly.

Last time, many friends missed the live broadcast and there was no replay. Since March is traditionally the first big market wave of the year, I want to clarify the strategy for everyone.

In March, new directions and main themes will emerge. The key question is: how should we act when a new main theme starts?

We are now in the era of quantitative trading. When new news breaks, funds rush in immediately. If you react a bit late, you miss the chance to get on board, or you get blocked at the door with a single order, which is a poor experience.

Let me use last year’s big market move as an example: Positive news over the weekend fermented, and on Monday, major orders flooded the main board, blocking most stocks from moving. The 20cm stocks also had little chance to rise.

During the early stage of a theme’s main rise, there are only two correct ways to intervene:

1. Trust early, buy in first to catch the gains, then buy again later. If there’s no chance with a single order, focus on sector rotation with main board + 20cm stocks, prioritize breakout stocks, and avoid mid-course entries. Only hold for 1–2 days for arbitrage; if the trend weakens, take profits and wait for divergence in the front-line stocks before switching to core stocks.

2. If there are no opportunities in the main board or 20cm stocks, go for arbitrage on the Beijing Stock Exchange. Referring to last year’s move with JiKang and Hengli, jump in at the first sign, and within 2–3 days, you can usually gain 20%–40%, so take profits promptly. When the sector reaches the 3rd–4th day and divergence appears in the front-line stocks, switch back to core stocks on the main board.

Summary of the new theme cycle: Major orders on the main board push stocks in a straight line → arbitrage in 20cm/30cm stocks → intervene in core stocks during front-line divergence → after high-level divergence, back-end stocks fall behind, and core leaders oscillate with abnormal movements (suitable for T+ trading, refer to PingTan, HangFa, Lio) → core leaders make another move or the trend ends.

This month will be different: Market-moving news is likely to appear suddenly during trading hours. You must act quickly to buy immediately, or after the news ferments that evening, follow this process to review and arbitrage.

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Wishing everyone to seize big market opportunities in March, double your accounts, and enjoy a bright new year!