Core Viewpoint - The article discusses the significance of stock index futures, particularly the FTSE China A50 index futures, as a tool for risk hedging and enhancing returns in investment strategies. It highlights their role in market predictions and the advantages they offer over traditional stock markets. Group 1: Characteristics and Advantages of Stock Index Futures - Stock index futures provide faster market expectation reflection due to T+0, two-way trading, and leverage mechanisms, often adjusting strategies based on night market performance [5][12] - They offer certainty in arbitrage opportunities, as seen in 2021 when the CSI 300 futures had a basis of over 30 points, leading to significant profits for institutional investors [5][14] - The diversity of arbitrage opportunities arises from price differences between various products, exemplified by the "large and small cap style switch" that yielded substantial excess returns [5][13] Group 2: Practical Applications for Investors - Investors can use small positions in index futures to hedge risks during market corrections while maintaining their stock holdings [6][14] - Larger investors can engage in arbitrage operations to achieve stable returns and balance portfolio risks [6][14] - The article emphasizes the need for investors to understand the trading strategies and arbitrage logic of stock index futures to optimize their investment approaches [6][16] Group 3: Educational Initiatives - An upcoming masterclass titled "Practical Trading Training for Stock Index Futures" is organized to help investors grasp the trading mindset and strategies associated with stock index futures [6][16] - The course will feature experienced instructors from New Lake Futures, providing insights into practical trading techniques and risk management [6][18][21]

- The DTW timing model is based on the principle of similarity and the DTW (Dynamic Time Warping) algorithm, which is a volume-price timing model[1][4][14] - The foreign capital timing model is constructed based on the divergence between foreign and domestic related assets, using four indicators reflecting foreign capital movements to generate timing signals for the A-share market[1][4][14] - The DTW timing model has shown an absolute return of 17.39% and an excess return of 17.83% relative to the CSI 300 since November 2022, with a maximum drawdown of 21.32% and a weekly win rate of over 60%[4][16] - The foreign capital timing model's long strategy has achieved an absolute return of 28.83% since 2024, with a maximum drawdown of 8.32%[4][23] - The DTW timing model uses the DTW distance algorithm instead of the Euclidean distance to measure similarity, as the DTW distance can better handle the misalignment of time series[29][30] - The DTW timing model has been improved by incorporating boundary constraints proposed by Sakoe-Chiba and Itakura to address the "pathological matching" problem of the traditional DTW algorithm[31][32][37] - The foreign capital timing strategy is based on two overseas listed assets related to A-shares: FTSE China A50 Index Futures (Singapore market) and Southern A50ETF (Hong Kong market), constructing timing signals through price divergence and premium/discount indicators[36][12] - The DTW timing model's performance in 2024 includes an absolute return of 15.68%, an excess return of 4.93%, a maximum drawdown of 21.36%, a trading win rate of 63.64%, and a profit-loss ratio of 2.64[18][19][20] - The foreign capital timing model's performance from December 30, 2014, to December 31, 2024, shows an annualized return of 18.96% (long-short) and 14.19% (long-only), with maximum drawdowns of 25.69% and 17.27%, respectively, and a daily win rate of nearly 55%[20][22][24]