How to Establish Trading Strategy Scoring Criteria—Foreign Exchange Technology Sharing

Three-State System Notes
asa forex community

In fact, every trader only needs a trading system. A real master has always had his own unique skills, just like the Dugu Nine Swords, which can break all kinds of weapons, such as the broken knife style and the broken sword style. When traders wait for their own opportunities, there are already corresponding strategies for how the follow-up market will go. In order to control the enemy with one move in the market and reap profits.

(For more transaction information dry goods, see my Huihu homepage and follow the official account )

Only the trading methods are the same every time, the risk control is the same every time, and the profit is following a routine every time. Only a trading system that can be copied and operated repeatedly can truly achieve stable profits and unlimited amplification.

1. Definition of strategy scoring criteria:

One is the strategy level: we have two categories for the strategy level: one is the cost-effective strategy, and the other is the confirmation strategy. To put it bluntly, one focuses on space, and the other focuses on winning percentage.

One is the trend level: one is the management strategy, and the other is the space strategy; to put it bluntly, one is to earn a little and run away, and the other is to eat as much as you can after a wave of trends.

The combination of these two levels can be subdivided into four types:

1. Cost-effective management strategy, 2. Cost-effective space strategy.

3. Confirmation management strategy, 4. Confirmation space strategy.

2. How to establish your own strategy scoring criteria:

1. The reference factors in your system, such as the time period, hierarchical structure, profit-loss ratio, risk control, etc., write all the reference factors in your system in the notebook. Each of the factors in the trading system is an item in your trading system, and it is a problem to be considered when you place an order; then list these factors and list them out.

2. When doing transactions, if you think those problems and factors are substantive and the most direct key points, then you can score them. How many points can this strategy score on this factor? This strategy is in another How many points can be scored on the factors, and then combined to form an objective evaluation.

3. Analysis is something done before opening a position, and psychological changes are something that occurs after opening a position. Analysis has nothing to do with psychological changes. Holding positions is related to psychological changes. However, confidence in the analysis will greatly strengthen the confidence in holding positions so that the psychology will not change much.

Asa Foreign Exchange Community Example Explanation: 9-point strategy for Europe, Japan and Japan

①Market structure

The structure is clear, it is a standard double bottom structure + standard breaking wave (the red horizontal line breaks the position)

The current market forms an ascending channel, which is the best entry point for the three-stage structure, as shown by the short red arrow

The structure of the small cycle and the large cycle are unified, not just a single rising structure of the small cycle, so after the synthesis, the market structure can be scored full marks.

​②Time cycle scoring

Key points: Look at the trend from a large cycle to a small cycle, and look at the possibility of a change in the market from a small cycle to a large cycle.

The figure below shows the 1H cycle, the bottom formed repeatedly for a long time, with a high degree of confirmation, not the bottom formed by M15 just a little time.

​③Strength and weak relationship score

In the ascending channel, the previous period of callback is very weak, and then the second period of callback is also very weak, indicating that the bears are weak, and the bulls must still have the advantage in the future.

Copyright reserved to the author

Last updated: 08/25/2023 08:34

440 Upvotes
6 Comments
Add
Original
Related questions
About Us User AgreementPrivacy PolicyRisk DisclosurePartner Program AgreementCommunity Guidelines Help Center Feedback
App Store Android

Risk Disclosure

Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Any opinions, chats, messages, news, research, analyses, prices, or other information contained on this Website are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. Opinions, market data, recommendations or any other content is subject to change at any time without notice. Trading.live shall not be liable for any loss or damage which may arise directly or indirectly from use of or reliance on such information.

© 2024 Tradinglive Limited. All Rights Reserved.