When we first started trading, we always designed the trading system to be very complicated, and we were always worried about which side would not consider missing some opportunities.
But as time goes on, we will gradually find that even the perfect trading system can't catch all the trends. Some things have to give up.
My initial trading system used a triple time frame, the largest time period was used to see the general trend, the middle time period was used to enter the market, and the smallest time period was used to exit. There seems to be nothing wrong with it. But there are also some problems in using it.
Especially when the trend between the maximum time period and the middle time period is inconsistent, I often hesitate to give up. Sometimes the ups and downs are really attractive. Don't give up, I don't know how to open a position.
Finally, I changed the triple time frame to double time frame, used a time period to look at the situation, and chose an accurate entry point and exit point. This can ensure the uniqueness of the signal. Moreover, it looks simple and can decide whether to enter the market in the shortest time, which is helpful to improve execution.
2. The trading system should be able to filter invalid trends.
I think the standard to measure whether a trading system is excellent is to see how effective it is in filtering invalid trends. As we all know, in futures trading, most trends are aimed at confusing investors, and few trends are really suitable for investors to participate.
If investors do anything without screening, it will increase a lot of unnecessary costs. Even if you can strictly implement the stop loss, you will lose some trial order costs and handling fees, which will make you feel very uncomfortable.
Therefore, I believe that the primary goal of traders in establishing trading systems is to filter out those invalid trends. Of course, it is impossible to filter out all of them, but a large part can be filtered out. There will also be many false breakthroughs and trend abortions in the remaining trends.
But strict stop loss can minimize the loss. If we add reasonable take profit, we can win more and lose less.
Of course, this is theoretical. Most traders are easily influenced by emotions when making orders, and cannot strictly follow the signals sent by the trading system. Then even the best trading system has become a decoration. Therefore, if traders want to make a difference in the futures market, they should not only establish a simple trading system, but also strengthen their inner cultivation, so that they can abide by the trading system as much as possible, so as to maintain good trading results.
This week, enterprises in several cities began to return to work one after another. To tell the truth, going to work is not terrible. The terrible thing is that there is no mas