ABSTRACT
Using mathematical modelling, this study takes authentic public securities data as the basis to test the RSI expert system and the W%R expert system. By taking the annual net profit margin, rate of return and winning rate as the management goal, the two reverse directional indexes are calculated and analysed, thus obtaining the RSI expert system and the W%R expert system. Compared with the winning rate of one-time purchase of all funds, that resulting from step-by-step purchase at 30% funds can merely increase 9.29% and 6.31% respectively. However, the annual rate of return and net profit margin drop significantly to 41.85% and 50.93%, and the number of annual transactions reduce by 84 and 758.4 times. According to the market implication of this calculation result, the method of funds management is meaningless for the RSI and W%R expert systems.
