Programmatic trading software
After determining the overall construction idea, all parts of a complete trading system should be quantified, including:
First, the establishment of the largest single and overall trading positions, I think it is more appropriate to combine the average oscillation amplitude of a single variety to determine the fixed proportion of total funds.
Second, the timing of opening positions. Now that we have decided to follow the trend, the price should be our most concerned indicator. We can use the price to break through a certain high point as a signal to open a position, but this signal to open a position can be filtered out by other different conditions, such as the distance between the price and the moving average.
Third, the choice of the number and timing of adding positions. As for jiacang, it is a difficult operation step to master. I initially think that jiacang should be carried out after the trend has been established and the obvious pressure or support has been broken. Can this pressure or support be directly used for technical analysis? Will this cause great conflict to the whole programmed trading system? Because this is subjective after all, and it is difficult to quantify before operation, which deviates from the original intention of the programmed trading system. Whether it is feasible is debatable.
Fourth, the setting of stop loss. Stop loss is an important part of the whole trading system. Similar to determining the maximum position, we can set the stop loss as a fixed proportion and treat it differently according to the different characteristics of different varieties, and adjust the stop loss point after adding positions.
5. Close the profit position. As for the liquidation, because we follow the trend, we can't let small price fluctuations affect the overall operation, but it is still difficult to define whether it is a small callback or a big adjustment or a price reversal in quantity and energy. Of course, using statistical methods, we can calculate the fluctuation of historical data and its corresponding price performance, but the significance of such historical data for future operation deserves further verification.
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