Larry Williams, a veteran who has participated in the capital market for many years, said: "Before learning the fund management methods, you were just a trivial speculator. If you make some money here and lose some money there, you will never make a lot of money. You will never catch the magic ring of commodity trading. You are just wandering in the transaction, picking up small money and not catching big money. " For futures trading, because it is leveraged and has a deadline, the fund management of futures trading is more important.
Before trading, investors must carefully consider all aspects: choose radical trading mode or safe trading mode? How to allocate funds in various markets? Risk tolerance of the overall account? What is the initial risk tolerance of each transaction? How to run relocation? What are the overall expectations of customers? What is the maximum withdrawal rate of funds? What is the handling fee ratio of futures speculation? What measures are taken after profit or loss? ……
The futures market is like a magnifying glass, which can magnify the advantages and disadvantages of human nature. Aggressive traders often adopt the trading mode of heavy positions, floating profits and adding positions. If the direction is judged correctly, the short-term profit will be considerable, but once the transaction is not smooth, the retracement will be great. In the case of loss, if the trader's mentality is not well adjusted and he is eager to make a comeback, he will often fall into intraday trading, and then fall into a vicious circle, leading to violent fluctuations in the capital curve. In fact, the trader's capital map "draws" the trader's psychological change map. Traders have different styles, and everyone's position is between radical and safe. The author chooses steady growth, not ups and downs, to maintain a good trading state and mentality.
Principles and key points of fund management
First of all, the investment amount must be limited to 50% of the total capital. In other words, at any time, traders should not put more than half of their total capital into the market, and the remaining half is reserves to ensure that they are prepared when the transaction is not smooth or unexpected.
The greatest charm of futures lies in "leverage" trading, but excessive leverage will affect the trading mentality. The lever below 3 times is within the normal operating range. You only use 30% of the total funds to run the transaction, and generally don't explode. Regarding the overall fund management, there is a good way to realize it, that is, the total funds are divided into two parts, half of which are placed in futures accounts for trading, and the other half are placed in bank accounts as emergency reserve funds.
Second, the investment in any single market must be limited to 10%- 15% of the total funds. This measure can prevent investors from injecting too much principal into a market, thus avoiding the risk of hanging from a tree.
Third, the maximum loss of any single market must be limited to less than 5% of the total capital. This 5% refers to the biggest loss that the trader will bear if the transaction fails. This is the starting point of the transaction.
Fourth, the total margin invested in any market group must be limited to 20%-25% of the total capital. This is to prevent traders from investing too much principal in a certain market. Because the markets in the same group are often in step, if all the capital positions are injected into different markets in the same group, it will violate the principle of risk diversification. The above essentials are common in the industry, and we can modify them according to the needs of various investors.
Using capital curve to control risk
The capital map generally includes net capital, handling fee, position, maximum withdrawal time and other elements.
The maximum withdrawal rate of funds is used to assess the risk control ability of traders. Generally speaking, the maximum withdrawal rate cannot exceed 15%, and the withdrawal is too large, so it is difficult to return the capital. The smaller the loss, the less difficult it is to recover. Therefore, a sharp retreat must be avoided.
The handling fee accounts for less than 5%, which is used to assess the ability of traders to grasp high probability opportunities. In the futures market, opportunities do not always exist, but reducing trading frequency means reducing trading costs, thus increasing trading life.
Positions are used to assess the execution ability of traders. Positions are divided into intra-day positions and overnight positions. Planned intra-day positions, regardless of losses or profits, must be resolutely closed before the afternoon closing, and there should be no luck.
The maximum retracement time is used to evaluate the stability of traders. The shortest the maximum withdrawal time, the better, and it is best not to exceed one month. If there is a monthly loss, it is necessary to suspend trading and study whether the trading strategy is suitable for the recent market characteristics.
Ensure the implementation of fund management measures.
The difficulty of fund management lies in the unity of knowledge and action. When I first started trading, I chose stock index futures because of its large volume and good liquidity. At first, I was very cautious. I made short positions and made some money. After that, the heavy position was short-term, the profit was expanded and the confidence was full. Who knows that it will be refunded by 20% in a few days. With the loss list, I am very reluctant to increase my position and share the cost equally. I just want to recover the loss as soon as possible. Who knows that the funds are continuously and substantially withdrawn, and the short-term is the middle line, and the middle line is "contributing". Six months of profit, three months of loss, and return to "before liberation" in one fell swoop. I began to seriously reflect and found that the problem lies in fund management. So I log on to the futures actual combat network every day, pay attention to and analyze the changes of my capital curve, compare with others at any time, and find out the problems existing in my trading.
Facing the capital curve, I changed my trading strategy, lowered my profit expectation, lowered my position, and changed my daily intraday trading to weekly trading. If the list is profitable, take a pyramid-like jiacang; If the order loses money, it will stop at a small loss and not add positions to the loss list. In case the funds continue to withdraw, we will go out and wait and see for a while, so that the capital curve will gradually flatten, or the mentality will gradually stabilize, and then we will do band trading lightly. In this way, although the profit is not as fast as short-term heavy positions, the retracement is small and the capital curve can rise steadily. The market never lacks opportunities. Only by controlling the retreat can we maintain our strength and seize the big opportunity.
Fund management is the most critical link in futures trading. Only by mastering scientific principles, combining with one's own personality characteristics and formulating a set of practical fund management methods can we survive in the futures market for a long time. Only by doing a good job in fund management can we become a "star" in the futures market and shine for a long time.