This tool provides a laddered buy strategy and backtest framework for Yili shares (600887), with a 5-tier buy plan, execution logic, adjustment conditions, and historical backtest results.
When to use
Investors face uncertainty in timing the purchase of Yili shares; this tool helps them systematically buy in tiers to lower average cost and manage risk.
How to use
- 1Review the core conclusions and the tiered buy plan table (L1-L5) with trigger prices, weights, and amounts.
- 2Set up monitoring for each tier's trigger price; when the closing price first falls to or below a tier's trigger, buy the specified amount at the next day's open or with a limit order.
- 3Manage cash: keep un-triggered funds in cash or money market funds; consider dividend reinvestment to lower cost.
- 4If price rises above the highest trigger (26.00) without full deployment, switch to a 'buy-on-dip' approach; if price falls below the lowest trigger (21.80), pause and reassess fundamentals before ext
- 5Use the backtest results to compare different weight schemes and step sizes, and adjust parameters based on your risk preference.
- 6Scale the example total capital (100,000 yuan) to your own portfolio size, ensuring single-stock exposure does not exceed 20-30% of total assets.
Input & output
Inputs: total capital, tier trigger prices, weights, step size, and historical price data. Outputs: weighted average cost, return (with/without dividends), capital deployment rate, and backtest performance metrics.
Who it's for
This tool is useful for investors who want a disciplined, data-driven approach to buying Yili shares, especially those looking to manage risk and avoid emotional trading.
FAQ
- What is the purpose of the laddered buy strategy?
- It allows you to buy in tiers as the price falls, lowering your average cost and reducing the risk of buying all at once at a high price.
- How are the trigger prices determined?
- They are set at intervals of about 4% below the current price, with the first tier at 26.00 and subsequent tiers at 24.80, 23.80, 22.80, and 21.80.
- What should I do if the price never reaches the lower tiers?
- If the price stays in a narrow range, you can adjust the trigger prices upward by 2-3% after 6 months to avoid staying in cash for too long.
- Can I use this strategy for other stocks?
- The framework is generic, but the specific parameters (trigger prices, weights) are tailored to Yili's historical data and should be recalibrated for other stocks.