In the stock and futures industries, the term trading system is very confusing. Not only are ordinary investors and futures people unaware of it, but some industry insiders often talk about trading systems in words and writing, but in fact I don't know what to say. In particular, some software manufacturers and dealers, for the purpose of sales promotion, deliberately exaggerate product performance and blur the essential differences between trading systems and general market reporting software or market auxiliary analysis software, which further aggravates this confusing situation and is very unfortunate. Conducive to the research, communication and development of trading systems. Therefore, the author believes that it is necessary to discuss the concepts and characteristics of the trading system to set the record straight.
What is a trading system? From a simple concept, a trading system is the materialization of systematic trading thinking. Systematic trading thinking is a concept, which is reflected in the overall observation of price movements and the continuous observation of time in the market judgment and analysis, and is reflected in the decision-making characteristics of trading objects, trading capital and trading investors. A comprehensive reflection of the three major elements.
Systematic trading thinking is "Tao", and the materialization of "Tao" is "tool". As an "instrument", a trading system should have the following basic characteristics.
1. The trading system must reflect the characteristics of the trading object, trading capital and traders
The trading system must reflect the price movement characteristics of the trading object, including the trend and price of price movement. The former provides the strategic direction of trading for trading decisions. , the latter provides tactical entry and exit points for trading. Therefore, the trading system must have a market judgment subsystem, and this subsystem must have at least two basic components: a trend judgment module and a price judgment module.
The trading system must reflect the risk characteristics of the trading capital. As far as the price movement characteristics of risk trading objects are concerned, the randomness of individual price movements in a specific time and space and the regularity of the overall price movement are the opposites of chance and necessity. Therefore, while admitting that the rules of price movement of risky trading objects can be revealed, it must also be admitted that random price disturbances are inevitable and coexist with their regularity. Due to the existence of random price disturbances, it will inevitably cause judgment errors in the market judgment subsystem, thus causing transaction risks. Trading risk is specific, and its manifestation is the possibility or actual loss of trading capital. The size of the risk is measured by the proportion of losses in trading capital. Moreover, capital itself also has unique risk characteristics. For example, the length of time the capital is occupied, the source of capital, the purpose of investment, etc., will all affect the risk attributes of capital. Therefore, it is not enough for the trading system to only have the function of market judgment. It must also have the function of risk control. The trading system must have a risk control and fund management subsystem in its structure, so as to achieve precise and quantitative control while meeting the risk characteristics of capital. Risks, the effect of protecting capital, and then realizing the growth requirements of capital.
The trading system must also reflect the human characteristics of traders (investors). The trading method itself is a scientific art and an artistic science. Among them, the trading method is restricted by the characteristics of price movement and capital characteristics. This restriction is a reflection of scientific nature, but the trading method must also be restricted by human nature and have the radical, conservative or stable personality of the investor, otherwise , the trading system cannot be accepted by people. The human characteristics of the trading system lead to the artistry of trading methods, and are embodied in different trading strategies with human colors. Therefore, if the trading system is private, it must have the culture, personality, experience and other personal characteristics of its developer and user; and if the trading system is a semi-open trading tool for fund investment, it should have the ability to accommodate A library of trading strategies with different human characteristics to meet the optional requirements of adapting to the human characteristics of fund directors or specific transaction implementation management.
2. The trading system must be able to adapt to the needs of actual combat
The trading system must be able to monitor the entire transaction process in real time, and be able to independently and automatically complete the collection, sorting, storage, analysis, decision-making and issuance of trading instructions of price information, and, This instruction must include all instruction elements such as transaction date, time, client code, transaction object name, code, transaction direction, transaction purpose, transaction quantity, transaction price, etc. When the trading system performs the above tasks, it must reach the standard of replacing and surpassing manual methods, transcending the physiological and psychological limitations of human beings, and meeting the goals of human beings in designing and using trading systems. Considering the above functional standards, if the trading system wants to meet this standard, it must be an intelligent program system that uses the price information network and the instruction transmission network as the channels and the computer as the carrier.
In the practice of designing, improving and using trading systems, out of professional interest, the author naturally came into contact with many people who claimed to have trading systems through various channels. However, the results of the actual investigation have not been found so far. Discover a real trading system. Among them, there are two typical situations:
The first is to call other trading software trading systems. For example: software such as Qianlong, Shenglong, Shihua Financier, Compass, etc. that mainly have market reporting functions and also have market auxiliary analysis functions are called trading systems; customer online trading order placing systems such as Kingstar are called trading systems.
These software do not have risk control and fund management functions, nor do they have a trading strategy library, nor do they have the function of independent intelligent decision-making and issuing trading instructions. Therefore, they cannot be called trading systems.
The second situation is that some traders claim to have a trading system, but in fact there is no materialized entity. Most of them are just a combination of indicators for market judgment or relatively preliminary system trading ideas. These so-called trading systems that have no materialized form, even if they are relatively complete system trading ideas, still do not have the characteristics of a trading system and cannot be called a trading system.
Although the author is pleased that his trading system has not encountered any rivals in mainland China, he is also worried about the state of risk trading research in my country. The quality of the trading system is actually one of the important indicators of the research level of modern risk trading theory. While the risk trading funds on Wall Street are arming themselves with their own trading systems, the theoretical circles in my country are still in the stage of conceptual literacy. The author I thought it was really inappropriate.
E-commerce originates from the English ELECTRONIC COMMERCE, abbreviated as EC. As the name suggests, its content includes two aspects, one is electronic means, and the other is business activities.
E-commerce refers to the use of simple, fast, and low-cost electronic communication methods for buyers and sellers to conduct various commercial activities without meeting. E-commerce can be accomplished through a variety of electronic communication methods. Simple, for example, if you conduct business activities with customers by making phone calls or sending faxes, it seems that it can also be called e-commerce; however, the e-commerce that people are discussing now is mainly completed by EDI (Electronic Data Interchange) and INTERNET. of. Especially as INTERNET technology becomes increasingly mature, the real development of e-commerce will be based on INTERNET technology. Therefore, some people refer to e-commerce as IC (INTERNET COMMERCE).
From the perspective of trade activities, e-commerce can be realized in multiple links. Therefore, e-commerce can also be divided into two levels. Lower-level e-commerce such as e-commerce, e-commerce, and e-commerce Contracts, etc.; the most complete and advanced e-commerce should be able to use the INTENET network to carry out all trade activities, that is, to completely realize information flow, business flow, capital flow and part of logistics online. In other words, you can Starting from finding customers, all the way to negotiation, ordering, online payment (receipt), issuance of electronic invoices, electronic customs declaration, electronic tax payment, etc. are all completed in one go through the INTERNET.
To achieve complete e-commerce, many aspects will be involved. In addition to buyers and sellers, banks or financial institutions, government agencies, certification agencies, distribution centers and other institutions must also join. Since all parties involved in e-commerce do not physically meet each other, the entire e-commerce process is not a replica of business activities in the physical world. Conditions such as online banking and online electronic payment and technologies such as data encryption and electronic signatures are important in e-commerce. plays an important and indispensable role.