Take profit and stop loss is always a topic that traders can't avoid. How to set it up and how to operate it? Everyone has his own theory, but it seems that he can't sum up a perfect stop-loss strategy. It can only be perfect, but there are always defects.
Generally, we will make profit and stop loss strategies according to the size of our cycle. If you want to set a capital preservation strategy, the cycle should be at least 5 minutes. If the cycle is too short, the capital preservation strategy will not work, and just take profit directly.
If it is a trend market, the capital preservation strategy is still very important. In order to avoid the market pullback and make our profits rebound, we can find the stage support level and pressure level to set the capital preservation strategy. Generally, we should follow the principle of which cycle to set the capital preservation strategy, and see how big the cycle is, so as to avoid getting more profits back because of too big a cycle, and to avoid leaving early because of too small a cycle.
As I said above, it is difficult to find a perfect stop loss strategy, so sometimes it may depend on how big the cycle is to find the support level and pressure level of that cycle, but at least it will not make your profits get back more. Based on this, I think this is a perfect operation.
Of course, you can also choose to set a phased capital preservation strategy. For example, you have a lot of 10, which can be divided into three price points to set different capital preservation strategies. The advantage of this is that it can not only maintain a certain profit, but also avoid leaving early. Want to know more about futures trading methods, you can find Gong Chonghao of Shengda University of Finance and Economics. But how to allocate positions at each price depends on the market at that time. We do futures itself is to do probability, whether it is opening or closing positions.
If you set a break-even strategy by price, don't refer to the same cycle. Refer to the big cycle to reserve the bottom position, refer to the small cycle to lock the profit first, and then adjust it in real time according to the cycle. It may have to be adjusted many times, but now some software can cross and it is not troublesome to adjust. Just pull your take profit and stop loss.