Grid trading was originally founded by a man named Claude elwood Shannon. His main idea is that the way to buy assets now is to buy at any price, but when he first opens a position, he will use 50% of his account funds to buy assets.

When the asset price rises to a certain extent, sell some positions; When the price falls to a certain extent, it will buy a part to cover the position, and eventually cash and assets will each account for 50%, which is the embryonic form of grid trading.

Then, since the 1940s, there have been many kinds of grid trading strategies, including position management, even trend grid and shock grid. No matter how it changes, grid is always a fund management strategy. The following mainly introduces a relatively rare fund management mode in power grid transactions, as well as its weaknesses and solutions.

1. The size of the grid. That is, the size of the grid, the most common is a fixed size, that is, the size of each grid is always the same. For example, every 20-point drop in the stock price 1 time and every 20-point rise 1 time is fixed.

2. Trends and shocks grid. According to the operation state of the market, it is divided into trend and shock grid strategy. Although the power grid transactions are short and long, the power grid is most afraid of encountering extreme unilateral market, which eventually leads to insufficient funds or even broken positions.

Therefore, according to their own experience, traders divide market trends into shocks and trends, and use corresponding grid strategies to increase the adaptability of grid strategies to the market. However, this requires traders to understand the market themselves.

Second, the fund management model.

In the conventional grid trading strategy, the market fluctuation or trend state is not judged, and the number of positions opened each time is equal. Then, the traditional grid strategy is introduced. When you encounter a unilateral market, you will keep buying more or shorting. If risk control is not set in the strategy for management, it will eventually lead to explosion.

Grid transaction

Therefore, most people who use grid trading will choose to judge whether the market is a trend grid or a shock grid, and control the exit range of grid strategy to reduce the impact of strategic weaknesses on trading results.

The following will introduce a relatively rare fund management model:

In fact, it is essentially similar to Martin's fund management. The fund management of Martin's strategy is to increase the position with more losses. This is the fund management mode to be introduced below, and we use the trend grid to explain it.

Trading rules: selling representatives, empty representatives; Buying representatives are more open. The grid size is 20 points.

Situation 1:

(1) when the 60 moving average >; When the moving average is 120, open more 1 hand.

(2) After opening positions, put a grid line on the floor, close positions in multiple orders, and open positions 1 hand.

Situation 1

If the market has been rising, keep this action. But we all know that the market can't keep rising, and there will be a callback, so when there is a callback, this method will cause losses. When the market trend reaches the top of the stage, we will adopt the next scheme, which is similar to Martin's strategy.