Judge the trend

The market has only one direction, and that is the right direction. It does not distinguish between bull market and bear market. "Speculators should look to the future and formulate strategies for the future. The highest level of trading is based on correct methods and speculative strategies. The price trend conforms to the trader's own, and achieves the results that follow the trend, achieving the goal of large profits and small losses.

Win and Loss Ratio

The short-term core win and loss ratio of this system's long-term operation test is 3:1. It should be kept above this base in transactions, and the minimum is not less than 2:1. ; When the price has deviated from the effective price selection point and the win-loss ratio turns to 1:1 or even 1:2, there is no transaction. And strive for favorable orders, with the win-loss ratio enlarged to 4:1, or even higher.

Profit Management

For all transactions based on the first short-term target within the day, the corresponding first target is the only profit target.

The target management corresponding to the first target profit is divided into three stages of position execution: (example below)

Assume L as an example, select the first target point of 150 points. The theoretical loss point is 50 points (maximum loss amount), the profit target is 100 points, and the win-loss ratio is 2:1;

The first stage: floating loss stage or triggering loss point

A , after opening the position, he was trapped immediately, the 50-point stop loss point was triggered, and the loss was stopped immediately without any conditions.

After B opened the position, it was trapped immediately and the 50-point stop loss point was not triggered. However, if the effective point was broken, the loss should be stopped unconditionally. If the market is strong and it still conforms to the trader's judgment of the trading direction, it can be stopped again. intervention.

The second stage: small winning and medium winning stage, but the trading target has not been reached

C. After opening the position, the price deviates from the cost by 20 points. At this time, it only holds the cost stop point. The cost price can rise by 10 points, and a trailing stop loss is implemented.

D. After opening the position, the price deviates from the cost by 50 points. At this time, only the stop profit point is maintained. The cost price can fluctuate up to 20 points, and the follow-up stop loss is executed.

E. After opening the position, the price deviates from the cost by 100 points. At this time, only the stop profit point is maintained. The cost price can float 50-60 points, and the follow-up stop loss is executed.

The third stage: reaching the trading target or exceeding the target

F. After opening the position, the price reaches the first profit target of 150 points. At this time, short-term orders can be closed with profits. win. If it switches to a secondary target, or trades overnight, the strategy is as follows.

Remember: The core of any transaction is to make big profits and small losses. Although we cannot guarantee that we can get the first profit and first target in every transaction, please remember that after opening a position, the first The goal is your number one goal in this deal, nothing else.

Assuming that the market triggers the profit stop point or stop loss point of this transaction, then this transaction ends, please prepare for the next transaction.

Opening a position

There are two trading factors related to opening a position: one is the point, and the other is the number of times.

A. Opening point:

There are three sources of judgment for the opening point.

The first is the reference point provided by the system on the day, such as the market price. Before the second target point, place a long order, stop the loss if the maximum loss point is exceeded, and based on the effective low point selection within the loss range, calculate the high first target as the first target.

The second is to select a market price point closer to the reference point.

The third is to select market price points that are far away from the reference point.

After opening a position, immediately transfer it strictly to the position strategy and wait for market verification.

B, Number of positions opened:

Market fluctuations are sometimes relatively complex, or beyond the imagination of traders. Then traders may make consecutive misjudgments. For short-term swing traders, continuous stop loss represents errors in analytical logic and wrong judgment. In intraday trading, if the maximum stop loss point is triggered twice in a row, the trading of this variety will be stopped immediately on that day to avoid irreparable trading losses.

Position

The trading factors of the position can be managed by referring to the previous target;

After a position is opened, there are only two trading results: profit or loss.

There are four possible profit outcomes:

A. If the trading target is not reached, the profit stop is triggered and the transaction ends.

B. When the trading target is reached, the profit stop is triggered and the transaction ends.

C. Beyond the first target and reaching the second trading target, the profit stop is triggered and the transaction ends.

D. After converting into an overnight trend order, the profit stop point is triggered and the transaction ends.

Remember, let profits run until your profit stop is triggered.

Close a position

There are three factors for closing a position:

Trigger loss point

Trigger profit stop point

Triggering the profit stop point

Since the profit target is not a deterministic probability, all profit orders must be protected by a profit stop point. If it is beaten out by the market, this transaction can be regarded as over. Because on the basis of accurate judgment of point selection, the first target stop profit and stop win is a high probability event of the system. Before reaching the target, all trading positions are profitable, assuming that the first target target is 150. In principle, It is divided into 3 stages: opening a position, triggering the stop loss condition, and stopping the loss.

After opening a position, if you make a profit of 50 points, you can set a profit stop level of 10-20 points. When you make a profit of 100 points, you can set a profit stop level of 50-60 points. This will give the market a certain room for oscillation and development. Waiting for the profit target of this transaction and more updates A high profit target and no cover for profit.

When any closing factors are triggered, the trader must execute the trading action.

Add or reduce positions

In the right trend, expanding the position and reducing the position in the wrong trend are important means to protect rights and interests and expand profits. Every trading action has risks. After adding a new position, you should immediately calculate a new profit stop point to protect the position and rights. The action of adding positions within the short-term first target should be based on the principle that the cost after adding the position is still lower than the market price and can provide profit stop protection. In principle, one action only doubles the position. After adding the position, set the profit stop point and transfer to the position strategy execution. If you place an incorrect order, you will definitely not increase your position or cover your position.

Loss management

Loss is a part of any trading system and also a part of this system. It depends on whether the judgment of point selection is correct or not, and the slippage between point selection and opening point. The system risk of market slippage, market uncertainty, and market uncertainty will have a significant impact on trading rights, as well as the trader's own level of control constraints and the success of the trading strategy execution selection. Many factors.

So for loss management, the main management directions are:

A. To prevent big losses, if there is no selected point, or if the selected point is broken, you must leave the market. Even if the price trend confirms that the selected point is valid in the next minute and we enter the market again, we should think that after the selected point is broken, your order has no risk protection of loss points at all, and orders without loss points are the most terrifying. Assuming you don’t lose money, what should you do if the position is blocked in the opposite direction? Re-advancing after a loss means that new bottom characteristics have appeared. This is a second transaction, using two trading opportunities to capture the top (bottom) characteristics of the two market trends. This is two different things from taking money to resist losses. A good trader is willing to cut losses.

B, prevent continuous losses: In short-term trading, for the actual judgment of real point selection, we should give ourselves a fixed number of transactions. Personally, I think that if the day is high (low); second high In terms of judgment at the (low) point, when the win-loss ratio is 2:1, there are only 2 trading opportunities. If the win-loss ratio is greater than 3:1, there are 3 trading opportunities. The accumulation of all losses shall not exceed 1-2% of the total funds. This is a basic principle.