There is nothing wrong with this strategy itself.

Small periods, moving averages with large parameters, cutting off losses, and retaining half of the profits after 20 points of profit are all correct trading behaviors. If this is the entirety of your trading system, then it is obvious. This strategy has the following points to pay attention to:

1. Small cycle, how small a cycle is. The smaller the period, the more invalid signals and the heavier the handling fee. These two points will affect the stability of your system.

2. Although I don’t know your stop loss, since you are an old reader, I believe you should know the importance of cutting off losses. I understand that your stop loss will not exceed 20 points. If you can't do that, you need to narrow your stop loss.

3. After making a profit of 20 points, half of the profit will be retained. There are 2 problems with this appearance. First, although it may achieve big market prices, it will keep your winning rate at a low level. Because you bear a large retracement.

Secondly, did you appear overnight? Theoretically, your design is easy to trade overnight, as half of the profit is taken out on a retracement. But you have a small cycle. If you trade overnight, once a reverse direction opens low, your stop loss will easily be out of control.

4. Single variety or multiple varieties? If your method is used for a single variety, it will not be stable enough. Of course, if there is a market trend, it will be very explosive. If you want stability, you need to spread all varieties. If you want explosive power, just use a single variety.

These things are all things you need to pay attention to in your system. Theoretically speaking, if the variety traded by your strategy fluctuates enough, there will be no problem in making profits, and it will have positive profit expectations.

But the question is, can you accept the imperfections I mentioned above.

In other words, you should ask yourself whether it is suitable.

What do you think?

Like and support, thank you.