- Model Name: Four-Wheel Drive Model; Model Construction Idea: The model suggests focusing on specific industry sectors based on market conditions; Model Construction Process: The model evaluates different industry sectors such as pharmaceuticals, automobiles, computers, communications, and mechanical equipment, and provides signals for potential opportunities or risks based on recent market data and trends[2][8][15]; Model Evaluation: The model is designed to identify potential investment opportunities in various industry sectors during different market conditions[2][8][15] - Factor Name: Volume Reduction Factor; Factor Construction Idea: In a bull market, a significant reduction in trading volume during a downturn often indicates stabilization; Factor Construction Process: The factor measures the reduction in trading volume during a downturn, with a threshold of at least 55% reduction in a fast-rising bull market and 60%-65% in a slow bull market[7]; Factor Evaluation: This factor helps identify potential stabilization points during market downturns[7] - Factor Name: High-Frequency Thermometer Factor; Factor Construction Idea: In a bull market, a significant adjustment with a high-frequency thermometer reading below 10 (or at least below 20) often indicates short-term oversold conditions; Factor Construction Process: The factor measures the high-frequency thermometer reading during market adjustments to identify short-term oversold conditions[8]; Factor Evaluation: This factor helps identify potential short-term oversold conditions during market adjustments[8] Model Backtest Results - Four-Wheel Drive Model, Sharpe Ratio: 12[15] Factor Backtest Results - Volume Reduction Factor, Threshold: 55% (fast bull market), 60%-65% (slow bull market)[7] - High-Frequency Thermometer Factor, Threshold: below 10 (or at least below 20)[8]