A Comparative Analysis of the Six Pulse Sword and the Little Bull Breakthrough Stock Selection Strategies

With the development of the economy and the continuous maturation of the financial market, the market environment is becoming increasingly complex. Investors now need more sophisticated strategies to identify stocks with investment value and achieve higher returns. This article conducts a comparative analysis of the Six Pulse Sword stock selection strategy and the Little Bull Breakthrough stock selection strategy. The former identifies buying and selling points by leveraging the combined signals (resonance) of six key technical indicators. The latter focuses on identifying the sttrong momentum of the price breaking through the key resistance level, suggesting that the price may rise rapidly. This paper uses Python to construct the stock selection strategy code, retrieve the stock data of the past three years by using the tushare library, and then process the data to determine the buy and sell points and draw K-line charts. Finally, backtesting is conducted on individual stocks to evaluate the effectiveness of each strategy. The research results show that although both of these two strategies have their own advantages and limitations, they are applicable to different market conditions. The Little Bull Breakthrough stock selection strategy is particularly effective for short-term trading in volatile markets, while the Six Pulse Sword stock selection strategy is more suitable for medium and long-term stable investment.