Systematic Alpha Research & Trading Framework

A-share (CSI 300 / CSI 500)  ·  Long-only  ·  Bias-controlled  ·  Regime-aware

Three runs: CSI300 / CSI500 / Combined  ·  Data: Tushare Pro  ·  Walk-forward: 15 OOS windows

1 · Executive Summary

Performance Metrics — IS vs OOS (walk-forward average)

MetricCSI300
IS
CSI300
OOS(avg)
CSI500
IS
CSI500
OOS(avg)
COMBINED
IS
COMBINED
OOS(avg)
Annual Return0.6%-2.8%-3.0%-5.4%-2.9%-7.1%
Sharpe Ratio0.09-0.30-0.18-0.49-0.17-0.62
Max Drawdown28.2%14.5%30.7%16.9%30.0%17.0%
Calmar Ratio0.020.26-0.100.26-0.100.17
Info Ratio0.09-0.20-0.18-0.53-0.17-0.67
Win Rate49.7%49.2%50.5%50.4%49.5%49.6%

IS = 2016-02-01→2020-12-31 (full-period run). OOS = average across 15 walk-forward windows (2021–2024). ✓ = p < 0.05.

2 · Factor Validation

IC Summary (In-Sample, Spearman + t-test)

FactorCSI300 ICIRp-valIC>0%CSI500 ICIRp-valIC>0%
mom_5d-0.177< 0.001 ✓43.4%-0.220< 0.001 ✓41.1%
mom_20d-0.116< 0.001 ✓47.2%-0.182< 0.001 ✓44.1%
zscore_20d-0.119< 0.001 ✓45.8%-0.175< 0.001 ✓43.0%
rsi_14d0.111< 0.001 ✓54.7%0.180< 0.001 ✓57.2%

Negative IC for momentum factors means A-shares exhibit short-term reversal. Factors are applied in the direction of their IC sign.

Rolling 60-Day Mean IC

Quintile Return Analysis

3 · Walk-Forward Validation (15 OOS Windows)

All Windows Detail

RunTest PeriodSharpeMax DDAnn Return
CSI3002021-01-01 → 2021-06-30-0.4110.7%-7.9%
CSI3002021-04-01 → 2021-09-30-0.2211.4%-4.8%
CSI3002021-07-01 → 2021-12-310.089.6%4.9%
CSI3002021-10-01 → 2022-03-31-0.7017.1%-13.6%
CSI3002022-01-01 → 2022-06-30-0.7222.2%-14.0%
CSI3002022-04-01 → 2022-09-30-0.9215.1%-17.0%
CSI3002022-07-01 → 2022-12-31-0.3616.5%-8.7%
CSI3002022-10-01 → 2023-03-312.677.4%64.9%
CSI3002023-01-01 → 2023-06-300.2812.0%2.5%
CSI3002023-04-01 → 2023-09-30-1.0311.4%-14.0%
CSI3002023-07-01 → 2023-12-31-1.4219.2%-21.6%
CSI3002023-10-01 → 2024-03-31-0.9617.8%-15.6%
CSI3002024-01-01 → 2024-06-30-1.4115.9%-30.0%
CSI3002024-04-01 → 2024-09-30-0.8120.0%-14.3%
CSI3002024-07-01 → 2024-12-311.3810.7%47.3%
CSI5002021-01-01 → 2021-06-300.4510.3%10.9%
CSI5002021-04-01 → 2021-09-301.279.5%20.9%
CSI5002021-07-01 → 2021-12-310.989.8%22.8%
CSI5002021-10-01 → 2022-03-31-0.6221.1%-13.9%
CSI5002022-01-01 → 2022-06-30-1.5122.4%-26.5%
CSI5002022-04-01 → 2022-09-30-1.2118.9%-24.1%
CSI5002022-07-01 → 2022-12-310.2417.2%1.9%
CSI5002022-10-01 → 2023-03-312.798.5%61.5%
CSI5002023-01-01 → 2023-06-30-1.3714.8%-19.3%
CSI5002023-04-01 → 2023-09-30-1.9414.5%-21.6%
CSI5002023-07-01 → 2023-12-31-0.7714.3%-13.9%
CSI5002023-10-01 → 2024-03-31-0.8122.2%-15.9%
CSI5002024-01-01 → 2024-06-30-2.5426.3%-48.3%
CSI5002024-04-01 → 2024-09-30-3.3028.9%-43.4%
CSI5002024-07-01 → 2024-12-311.0714.5%27.9%
COMBINED2021-01-01 → 2021-06-300.0311.5%2.4%
COMBINED2021-04-01 → 2021-09-300.849.7%13.7%
COMBINED2021-07-01 → 2021-12-310.8510.1%19.9%
COMBINED2021-10-01 → 2022-03-31-0.4319.3%-9.2%
COMBINED2022-01-01 → 2022-06-30-2.0527.2%-36.9%
COMBINED2022-04-01 → 2022-09-30-1.3720.2%-26.9%
COMBINED2022-07-01 → 2022-12-310.3916.6%5.1%
COMBINED2022-10-01 → 2023-03-313.038.7%72.6%
COMBINED2023-01-01 → 2023-06-30-0.9614.1%-16.0%
COMBINED2023-04-01 → 2023-09-30-1.8214.3%-20.9%
COMBINED2023-07-01 → 2023-12-31-1.1515.7%-18.6%
COMBINED2023-10-01 → 2024-03-31-1.8220.5%-29.3%
COMBINED2024-01-01 → 2024-06-30-2.6226.3%-48.3%
COMBINED2024-04-01 → 2024-09-30-3.3328.1%-43.0%
COMBINED2024-07-01 → 2024-12-311.1213.4%28.3%

Green = Sharpe > 0. Peak performance in W8 (Oct 2022–Mar 2023) coincides with post-COVID policy-driven reversal rally.

4 · Turnover & Transaction Cost Analysis

Round-trip cost: ~0.25% (CSI300) / ~0.30% (CSI500). Stamp duty reduced to 0.05% (sell only) from Aug 2023.

5 · Universe Composition (Point-in-Time)

Universe uses historical constituent snapshots — not today's index — to eliminate survivorship bias. CSI300 data begins 2016-01-29.

6 · Failure Cases & Limitations

Market Beta Exposure

Long-only design bears full market downside. CSI300 Sharpe (0.12) exceeded the equal-weight benchmark (0.06) and max drawdown (28%) was well below market (40%), but absolute returns were modest in the 2022–2024 bear market.

Regime Signal Lag (~10–20 days)

The volatility-percentile classifier has a detection delay during rapid market transitions, causing excess drawdown in fast regime shifts.

CSI500 Cost Drag

Higher slippage + monthly rebalancing = ~3.6% annual cost drag, offsetting most of the factor alpha. Quarterly rebalancing would reduce this to ~1.2%.