1. From the perspective of understanding the transaction: with the above theoretical understanding, it is far from being realized. How to put the concept to the ground involves the understanding of the transaction. At the beginning, I also analyzed several parameters that determine the trading performance: winning rate, profit-loss ratio, and maximum number of consecutive losses (maximum retracement range).

2. Judging from the winning rate (or the number of transactions), this angle has a natural advantage, that is, there are few opportunities for a single variety in one year. First, it should be related to fundamentals. It is impossible for a variety to have a good chance every year, and even some varieties have no chance for several years, such as the lottery in these two years. Secondly, if there is an opportunity, it will take a long time to see the result of the long-short game.

3. From the perspective of profit-loss ratio, the simplest improvement method is to control the stop-loss interval reasonably. The smaller the stop loss, the greater the profit-loss ratio. This requires reasonable control and adjustment according to the individual characteristics of each variety, because the big market cannot exist every year. If you want to achieve a high profit-loss ratio in a reasonable, not particularly large range, reasonable control of stop loss is the best choice.

4. So in the relationship between winning percentage and profit-loss ratio, I tend to adopt the mode of reasonably controlling stop loss to improve it. Of course, this will bring some negative problems, such as just stopping or just pushing, and the price is moving in the opening direction. If the stop loss is enlarged, it will not only stop loss, but also take profit, or there are other problems.

5. From the point of controlling the maximum number of consecutive losses (maximum retracement range): combined with the above trading frequency and winning rate, profit-loss ratio and statistics of all historical trading results, my maximum number of consecutive losses is 5, and according to my fund management, the trading risk fund is allocated for 20 times, with the same stop loss amount each time. Therefore, the factor that affects my maximum withdrawal range is not continuous stop loss, but failure to reach the profit-loss ratio and no take profit.

Extended data:

To sum up, whether the trading strategy can be effective for a long time depends on what angle we take to understand the market. If we understand from the basic elements of quantity, price, time and space, it can be effective for a long time. Of course, there are many forms of expression. My observation mode is that as long as people have been involved in the market.

This observation angle is always valid. If a large proportion of participants focus on the same trading idea, I think there is still a chance, but it is getting harder and harder to do it. After all, they are all evolving, and there will be fewer and fewer opportunities and loopholes for the other party to make mistakes, but it may take a long time to really get to this point.