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What are the applications and limitations of the trading system?
Trading system is a very familiar term for a trader and trader, because it is something that traders must prepare before training, and trading system is a necessary condition for trading. Of course, even if there is a trading system, it cannot be taken lightly. The market situation is complex and diverse. We can't go through many battles just by relying on a trading system. It is out of the question. The trading system has its own problems. Let's take a look at the application and limitations of the trading system.

The importance of trading system has been paid more and more attention by investors. With the development of China's futures market, investors have gradually changed from blind trading to rational investment, and from passively following the disk to being guided by the trading system. Judging from the long-term profit of some people in the market, the long-term profit trading system should exist, but the trading system is only a trading tool for trading, and not everyone will get the same trading result with the trading system. Getting a trading system is not the same as profiting from it. The ability to use the trading system is far more important than the trading system itself, just as people are the key to winning or losing a war, not a weapon.

To judge a trading system, I think it should at least include the following aspects: 1, whether there is a clear trading signal, whether the risk can be effectively controlled, whether it is operable and whether it is profitable, not whether the profit times are greater than the loss times and whether it is suitable for you.

It is not difficult to find or buy a trading system now. The trading system itself is no secret. You can have one or even several trading systems if you want, but how to make a profit is still the real secret. For most investors, the trading results of the trading system are not much different from their own exploration, and long-term profits are still out of reach. He will find that this system works well in simulated trading, but it is not so good once it enters actual combat. The reason may be that the investor does not really understand the trading system, or the trading system is not suitable for him, and the key factor may be that the investor has no ability to use the trading system at all, and he cannot digest and absorb the trading system.

If you want to make a profit through the trading system, you must first understand the trading system correctly, and your trading ability must match the trading system. Don't try to let a three-year-old fly the space shuttle, let alone think that he and the space shuttle are useless just because the three-year-old can't fly the space shuttle well. In fact, most investors' trading ability is like a three-year-old child in front of the market, but their desire for profit is the same as that of adults, which leads to the fact that trading is often superior to others. When you recommend a mature and effective trading system to him, just like a three-year-old child recommending a space shuttle, he is excited and willing to accept it, but this does not improve his trading. Once again: the ability to use the trading system is far more important than the trading system itself!

The ability to use the trading system is shown in two aspects: 1, how to get through the difficult period of the system and how to give full play to the advantages of the system.

Never think that a profitable trading system can guarantee the success of every transaction! Any profit is made up of small losses and big gains. Any trading system has weaknesses, and losses are inevitable. For the trend tracking system, it is not required that the profit is greater than the loss. It only requires a small stop loss to find big profit opportunities. Such a system requires users to be prepared to accept small losses. As for the short-term trading system, it pays more attention to the pursuit of profitability.

The quantity is greater than the loss quantity, and the pursuit of accuracy. When choosing a trading system, investors must know which system is suitable for them and must not be conceited. Short-term trading requires investors to pay close attention to every move of the market. Fluctuation is his source of profit, and there can be no interference in the transaction. Trend trading is taboo, which will destroy his overall grasp of the trend. Fluctuation is the source of his losses, and he only needs to pay attention to whether the market trend changes. Most investors in the market get the trend profit by carefully making the market, which makes them unable to grasp the short-term and trends.

The essence of systematic trading is to deal with what is happening, not what will happen in the future. It trades according to trading signals, rather than predicting the market. Too many people spend too much time dealing with what will happen in the future, but they are at a loss about what is happening! But the future is unknown! This led to the ineffectiveness of his transaction. He always wants to stay ahead of the market, but ignores the reality of the market. His deal is illusory and lacks a realistic basis. This goes against the essence of the trading system. The correct trading concept is the premise of using the trading system!

When the system is in a loss period, it is not easy to think that the system needs to be changed or replaced. Loss is a normal phenomenon and must be accepted. At this time, you should tell yourself how to improve your ability and patience to cope with difficulties. Give up the system in difficult times, and the nightmare of loss will always follow you, while the profit will always wave and smile at you in the distance. In the profit period of the system, don't be smart, thinking that you can use your trading ability to improve the efficiency of the system. At this time, discipline is better than everything! The difficult period of the system can improve your trading ability, and the harvest period of the system can test your self-discipline spirit! This is how the trading system constantly helps you improve and make profits.

For system traders, the ups and downs of the market are not important, what matters is the execution of trading signals. This is precisely the most difficult thing to do, because the trading signals of the system often contradict your views on the market, and many trading opportunities are missed in the hesitation of investors, which is also the key to using the same trading system to produce different trading results. Systematic trading has shifted from judging the ups and downs to how to implement trading discipline. Investors are often in the judgment of market ups and downs, which will inevitably affect the effective use of trading systems. No matter whether the market is up or down, the system will send a trading signal at a critical moment. Seriously implementing the trading system can greatly simplify our transactions and make them simpler and more effective, which is also the fundamental reason why the trading system is so important. Implementing the trading system and observing discipline and principles will help you make a profit, not complicated analysis and thinking will help you make a profit!

In addition, the use of the trading system must maintain appropriate flexibility and flexibility. The same trading system is used by different people, and the trading results are bound to be different. Some people make money, some lose money, some make big money, and some even lose big money. The key lies in the user's ability to use. The same pen, the words written by different people are completely different, and so is the transaction. Don't be naive to think that everyone uses the same system and the result is the same. Trading can never be the same as a mathematical formula! The trading system is mechanical, and proper elasticity is like lubricating oil, which can make the machine run better. This lubricant is your trading ability and adaptability.

Therefore, don't be blindly optimistic before using the trading system. The key to profit lies in your trading ability. The system can only help you solve some problems, not all.