Large-Cap vs Small-Cap Style Rotation Strategy

In the Large-Cap vs Small-Cap Style Rotation Strategy, investors dynamically adjust the allocation ratio between large-cap and small-cap stocks according to market conditions to achieve better investment returns. The current implementation temporarily selects the CSI 300 Index as the large-cap benchmark and the SME ChiNext Index as the small-cap benchmark. This strategy not only effectively reduces investment risk but also enhances returns because large-cap and small-cap stocks may perform differently under various market environments. The rotation logic can be implemented through quantitative rules comparing moving averages or momentum indicators of both indices. Investors also need to closely monitor market fluctuations and the correlation degree between large-cap and small-cap stocks to better formulate investment strategies and allocation schemes. Key implementation functions would include calculating relative strength indicators, setting rebalancing thresholds, and executing position adjustments through automated trading modules.