Hello everyone, I am Xiaofu. Today we will talk about the application of the combined moving average commonly used in the Martin strategy in actual combat.
Martin's strategy is easy to master, with large trading volume and large profits, and is loved by most IBs and traders. Martin's strategy is known as the "king of brushing orders". However, the advantages of Martin's strategy are also the potential risks of Martin's strategy (it is recommended to make profits in time, and the most important thing is to keep the principal).
In Martin's strategy framework, the more commonly used moving average combination of the 9-day exponential moving average and the cross of the 5-day exponential moving average is used as the first entry point.
Of course, you will find that there are more color-changing lines in my example chart. This is an indicator added by my personal usage habits to filter the market.
So how to use it in actual combat?
You can add the Bollinger track (default parameter) on the basis of the 9-day line and the 5-day line, plus the 200-day weighted average as a trend line (you can add indicators that suit you as an auxiliary according to your own habits).
It is very clear from the renderings that there are many golden crosses on the trend line and dead crosses. But in actual combat, we pay attention to finding details in the framework to trade.
Billing conditions:
1. Above the trend line (the opposite is true for empty orders);
2. The golden cross of the moving average, and the k-line stands above the middle rail of the Bollinger rail. (empty is the opposite)
3. If the moving average is golden cross below the trend line, and the 9-day moving average is golden cross and the 200-day moving average is high, buy long orders before the k-line breaks through. (The opposite is true for empty orders) See the picture below
It is recommended not to make the stop loss too large, because the trading method itself uses relatively short-term moving averages. It can also be set according to personal trading habits.
Pay attention to the details of some transactions. When a stop profit comes out, should you chase the order or wait? This can be filtered based on indicators or your personal auxiliary indicators. So let's take a look at the picture below.
Of course, everyone has different trading habits. This can only be said that everyone has different methods of opening orders.
The frequency of opening orders for this combination strategy will be relatively high, so in actual combat, everyone should reduce the frequency of opening orders. The transaction is a steady stream, and relative stability is the most important thing.
So Xiaofu is here to remind everyone that the trading system is basically invalid on the data day. Therefore, in actual combat, try to avoid opening orders at the time of data release (only for traders of the trading system type).
Today’s use of the moving average combination commonly used in this Martin strategy in actual combat is introduced here. I hope it will be helpful to everyone. You are also welcome to make more suggestions and leave your valuable opinions in the comment area for communication. Let’s make progress together! !
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