People often ask me: Can you tell me about your trading secrets?
I often say something mysterious that no one can understand, and then tell him that there is no shortcut to deal in this world, and many people leave in frustration.
Today my assistant said that if I do this again, all the fans will run away. So today I will share my only trading secret: review.
This article will clearly and clearly explain all the problems of the review, suitable for people at all stages of trading.
This answer will be relatively long, you can bookmark it for reading, and if you feel that you have gained something, you can like it and support it.
1. What problems can replay solve?
What time period is suitable for trading?
How many varieties are suitable for trading?
Which species is better for trading?
How to set the position?
How should stop loss be set?
How to set the appearance?
After each stop loss, the market goes in the right direction again. How should such a market be dealt with?
Which parameter is better for the moving average? 60? 90? 120? SMA is better or EMA is better.
How can we filter out false signals and improve the success rate?
In the process of strong rise, what should I do if the top-bottom divergence of MACD always fails?
Should the connecting trendline be connecting entities or connecting leads?
wait wait wait……
I can write 100 questions like this.
When I first started trading, I kept asking others similar questions, how should I solve them?
A lot of people are asking me the same question now, and it will haunt other traders in the future. How to solve these problems?
Answer: Solve it with replay.
2. Why can replay solve these problems?
Let's illustrate with an example:
For example, if you want to know, which one is better, the 60-day moving average, the 90-day moving average, or the 120-day moving average, with fewer mistakes and more profits. Or you asked all kinds of "great gods", which line is more suitable for you, and everyone gave different answers, so how to choose?
Taking gold as an example, starting from 2010, we started trading with these three moving averages. After reviewing the 10-year market, we will do statistics to compare the profitability of the three moving averages.
The results of the data statistics are clear at a glance. You don’t need anyone to tell you which moving average is better and more profitable, and you don’t need any master’s advice. After the replay, you are a master. You can tell others what is the difference between the three moving averages .
I feel that 10 years of gold is not enough, and then review 10 years of euros, 10 years of British pounds, 10 years of crude oil, 10 years of Swiss francs, 50 years is not enough for 100 years, 100 years in fairy tales, animals can be cultivated into fairies, we still can't handle these three moving average?
Many people think that 100 years is unbelievable. In order to find and improve the trading system, I have basically been reviewing the market for three years. The sum of the market I reviewed is definitely more than 100 years.
Remember: No matter how wonderful the story told by others, it is not your story, but the experience after review is your own story.
Other problems can be solved as well:
How to set the stop loss? At the second low point or the lowest point, you will know how to set up the market after 10 years of work, and 10 years is not enough for 20 years.
From a statistical point of view, the amount of statistical data is too small to make much sense. If a trading signal has been traded more than 300 times, it can basically explain the problem.
3. What are the benefits of review?
There are too many replays, and there is a sense of replay
It has been 50 years since the review, and the 50-year market has passed before your eyes, and you have read the vicissitudes of the market. At this time, you either already have a sense of the market, or you no longer believe in the market sense.
Improve awareness of the trading market
After a large number of resumptions, traders have a completely different understanding of all trading elements of trading, market, market, risk, stop loss, and positions.
At this time, I can really understand: there is no highest market, only higher; why is stop loss important?
You can feel it when you do it, and everything is illusory when you think about it.
4. How to do a review?
Recovery software:
Today’s space is limited, so let’s talk about the resumption of foreign exchange first. If you are interested in futures resumption, you can ask me in private.
There is a special review software for foreign exchange. I use Forex Master. The official website seems to cost more than 1,000. I bought it from internal channels at a very cheap price. It has complete functions and is very easy to use (if you need it, you can private message it Me, I'll ask again).
The user interface of this software is not much different from the MT4 trading software we use. It can basically review all foreign varieties, straight crosses, gold and silver, and you can also choose different time periods for review.
Various technical indicators can be added for market analysis (there are basically indicators on MT4), 5 types of orders on MT4 such as buy stop, sell limit can be executed, different positions can be adjusted, and even the spread of different products can be adjusted. The process of resuming the market is equivalent to returning to a certain moment in history, for example: from January 2010 to 2020, gold will be traded again.
I won’t go into other details, you can find out by yourself or ask me directly.
Focus: Feasibility of the trading system
The enforceability of the trading system, this point of view is not talked about by many people now, and I also summed it up from the review and actual combat, which is very important.
For example: trading system profit and loss ratio.
The first trading system: 1:10 success rate is 20%, 100 transactions are 20 times right x10=200, 80 times wrong x1=80, the overall profit is 120.
The second trading system: 1:3 success rate is 45%; 100 transactions are 45 times right x3=135; 55 times wrong x1=55, the overall profit is 80.
Many people will choose the first trading system because it is more profitable; I will not, I will choose the second trading system, why?
First: There are 80 mistakes in 100 transactions, so the number of consecutive mistakes may reach about 20 times. Who can guarantee that traders will not have fear in the case of 20 consecutive mistakes.
It doesn’t take 20 times, even if you make a mistake, the mentality of the trader will collapse after more than 10 times. At this time, the trading system will not be able to execute. This “120” can only be seen but not earned.
However, with a rate of 45%, the number of wrong transactions is small, the psychological pressure of traders is small, the execution will not go wrong, the trading system can persist, and the "80" can be earned in the end.
Second: All traders are human. There is a saying that tigers still have a nap.
In actual combat, we will definitely make mistakes or miss trading opportunities. In the first type of transaction, the overall profit will be reduced by 10% if one misses a pair.
In the second type, the overall rate of trading profit and loss is only 3% lower than the overall rate of missing a transaction. The proportion of each transaction in the overall profit is reduced, the stability of the profit of the trading system will be stronger, and the enforceability of the trading system will be stronger.
This is also the meaning of review: pursue the smoothness of the capital curve, the better the smoothness, the stronger the execution of the trading system, and the greater the possibility of profit.
Summarize
Please keep in mind: God helps those who help themselves, and review can solve most of the problems in trading. The transaction itself is a matter with a very low threshold, but it still takes some effort to do it well.
That’s all for the question about the replay. If you have any questions, you can leave a message in the comment area, or contact me directly.
Good luck with your transaction.
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