Core Insights - The report emphasizes the importance of volume and price in trading, indicating that volume reflects the market participants' activity and sentiment, which can signal whether a trend will continue or reverse [4][5][6] - The PVMA (Price-Volume Moving Average) strategy has shown a 20-year backtested annual compound return of 14.7196%, with an alpha of 6.5315% and a maximum drawdown of 13.36%, indicating strong performance [1][10] - The REV (Price-Volume Indicator) strategy, which combines price and volume into a new indicator, has demonstrated a similar annual compound return of 14.7208% over the same period, but with a higher maximum drawdown of 31.67% [1][20] Summary of PVMA Strategy - The PVMA strategy focuses on the relationship between price and volume, identifying two key scenarios for generating buy signals: when volume increases alongside price, and when volume spikes during a downtrend, indicating potential reversals [5][7] - The strategy's trading rules include conditions for opening and closing positions based on moving averages of price and volume, without stop-loss settings [8][9] - Performance metrics for the PVMA strategy show a net value of 15.5866, with a cumulative excess return of 1076.0601% compared to the benchmark [10] Summary of REV Strategy - The REV strategy integrates price and volume into a single indicator, with the REV value calculated as the product of daily price change and turnover rate [15][16] - Trading rules for the REV strategy involve using dual exponential moving averages of the REV value to determine entry and exit points, also without stop-loss settings [19] - The REV strategy has a net value of 15.59 and a cumulative excess return of 1076.4019%, with a maximum drawdown of 31.67% [20] Comparative Analysis - The PVMA strategy generally has a lower maximum drawdown around 15% and a win rate exceeding 50%, making it more user-friendly, while the REV strategy offers higher returns, particularly in more volatile indices, with annual compound returns exceeding 40% in some cases [2][25]