Sensibility and rationality in investment

Abstract

Feeling and impulse are the first level of thinking, and investing only by feeling and impulse is an unreliable investment behavior. Unfortunately, some people either take their own course by feeling, or following other people blindly. Such behavior is very risky. The purpose of investment itself is to grab the biz. In order to achieve the purpose of profit, we should keep a sensitive mind and formulate concrete scientific investment methods. In an effort to make investors come with joy and back with satisfaction, we start our modeling effort. Finding the result is also an important part of the paper. Based on two models of gray prediction and trading strategy, our team solved the profit amount set out on October 9,2021. The final solution result is $242,584.835. What’s more, we also give 5 reasons to show that our trading strategy is optimal. Among them, our team thinks that the most important thing is that our model can not only achieve profit purposes in the long term, but also better regulate the market with frequent short-term fluctuations. Sensitivity analysis is also an important part of this paper. Our team visualizes the obtained results and then analyzed from macro and micro perspectives, respectively, to speculate on the possible causes. Finally, we communicated our trading strategy to traders as a memo.