What are the risks of floating profit and jiacang strategy?
The risk level of floating profit plus position strategy should be analyzed from three aspects, one is the maximum retracement that can be tolerated, the other is the leverage ratio, and the third is the probability of winning. First, the maximum retreat. 2. The leverage ratio 10 times, regardless of whether the floating profit is used for adding positions, as long as it is Man Cang, the margin 10%. However, for the initial funds before adding positions, the leverage ratio exceeds this value. Third: the probability of winning If the market moves randomly, the transaction before adding positions is profitable, and the probability of loss after adding positions is too great, that is, in a random market, it is not appropriate to add positions with floating profits. If the market is trending, it is a profitable transaction before adding positions, and it is more likely that the market will continue to be profitable after adding positions, that is, the trending market is suitable for adding positions in the same direction.