So is the futures trading system. Let me give you an example.
For example, a futures trader's trading system. His admission conditions are: when MACD crosses the moving average, 15 minutes satisfies the convergence triangle, and some fundamental data have changed, depending on the inflow and outflow of funds at that time, and so on.
His entry conditions are: not only the moving average is dead, the index value reaches a certain position, but also the volume of the 3-minute line, depending on the fundamental information and so on.
Imagine what it means to trade with such a system. It means that he wastes a lot of time on the court every day to analyze and count. Moreover, it seems that his conditions are very clear, in fact, many of them are very vague, and it is a big problem whether the execution can keep up.
Secondly, when a person refers to too many factors, it is difficult for him to produce a pattern fixedly. What if one of the 10 conditions he accepted does not meet? Not doing it? But nine of them are already satisfied. Would you like to try? Do you want to try when you meet eight? Will there be a market that can trigger all his conditions in the future? His trading system has poor fault tolerance, and a little accident may lead to the collapse of the whole trading model.
In other words, if an arbitrage trading system is not simple enough, there will be two big problems: 1 is ambiguous, which is not conducive to implementation. 2. Poor fault tolerance.
Many people make the trading system very complicated because they believe that too many conditions can make the system more accurate and improve the winning rate.
Actually, I can't.
Because the trend is chaotic and uncertain. No one can predict the future market, they are just trying to make mistakes. You try and make mistakes with one condition, and you try and make mistakes with 20 conditions, all of which are just trial and error. Moreover, take 20 conditions for trial and error. Once there is a big market that meets the conditions of 19, do you do it or not? In addition, is the probability of MACD crossing the broader market really higher than that of crossing the moving average?
People who can run simple strategies must have higher trading awareness, because it is easy to add conditions and difficult to abandon them.
An unusually simple strategy with few rules, as long as it can firmly occupy the core transaction essential logic and arbitrarily increase entities, then it has anti-vulnerability, it can better face the uncertainty of the future, and it is more likely to be more prominent in the future.
This is why the futures trading system should be simple.
In addition, because the avenue is simple.