Stop loss and profit taking method for crude oil:
1. Stop loss liquidation: when there is a certain profit, increase the cost of stop loss protection and then follow up? According to the development of the market, raise the stop loss according to the technical figure until the stop loss is destroyed. This method is suitable for unilateral market.
2. Close the position at the second top: when there is a certain profit, increase the cost of stop loss protection, and then increase the stop loss according to the technical figure with the development of the market. When it is observed that the price cannot reach a new high and there are signs of decline, it will close the position. This liquidation method is an improved and upgraded version of the stop-loss liquidation method, which can grasp the due profit to the greatest extent.
3. Close the position with resistance: close the position when the price reaches or is about to reach the next resistance level, without waiting for the impact result. This method is suitable for market fluctuation or rebound. On one side, most of the support is ineffective and many profits will be missed.
4. Target liquidation: treat each order as a gamble with high odds, and set stop loss and take profit at the same time. The take profit target is at least three times of the stop loss, and adjust the opening position according to the fixed loss amount. When holding a certain profit, the cost of stop loss protection will increase. Assuming that the profit-loss ratio is 3: 1 (this is the minimum value), as long as the success rate of making orders reaches 25%, the breakeven point can be reached. Assuming the success rate is 7:3, the overall ratio of the system is (7*3):(3* 1), which is 7: 1. This method is also most suitable for volatile markets.