A stable and profitable trading strategy

Introduction: This strategy is a trend-following strategy. The trend strategy makes profits in the trend and loses in the shock. People can't predict in advance whether the market is a trend or a shock, so they can only do it hard.

Several concepts explained :

Uptrend: That is, new highs are higher than previous highs and new lows are higher than previous lows. The downward trend is reversed. The uptrend and the downtrend are shocks.

Reversal pattern: There is only one pattern W (conversely, M), some people will say head and shoulders, head and shoulders are just a special W​.

​Operation :

1-hour cycle, audusd, xauusd, ma24, ma120

​A reversal pattern appears and breaks through ma120, you can enter the market, and set the stop loss at the top. After that, if there is a callback, a reversal pattern in the same direction as the previous entry order appears at the next level and breaks through ma24, you can enter the market again, and the stop loss is at the top of this level. Follow up stop loss after a new high point appears again.

The risk control is about 2% for a single loss, and the single loss for the sub-level is about 1%.

(The moving average is not drawn in the figure, and the specific operation should consider the moving average.)​

Replay :

The entry and exit rules are here, the market is ever-changing, and the specific situation needs to be experienced, analyzed, judged and corrected. It is recommended that you review the 1-hour K-line chart for 3 years with about 18,000 K-lines or other periodic charts of equivalent K-lines. If you feel that the strategy needs to be revised and supplemented during or after the review, you can re-test a new section after the correction The time is about 18,000 k-lines. If it is still corrected, continue the previous operation until no correction is required after the replay.

Strategy explained :

Trend strategies require consistency, and audusd and xauusd are more consistent than other varieties in the 1-hour chart​. Of course, the continuity of day, week k, month k, and year k must be very good, but a person's life is limited, and the faster the turnover rate, the better. For example, stock indexes are more active only when the local stock market opens, and foreign exchange is also more active when the local foreign exchange market opens. Choose xauusd because xauusd is active almost all day; choose audusd because it is active in Australia and the United States, because the euro has a greater impact on the US dollar. Therefore, audusd is more active in Australia, Europe, and the United States, so the continuity is better. The intraday continuity of eurusd, look at the 1-hour chart, the obvious volatility and trading volume in the Asian market are very small, this kind of intraday continuity is an obstacle. All varieties are suitable if you do daily K or every other day in a small cycle.

Mentality :

Having a stable and profitable strategy may not be profitable, just like having a weapon, but you can't use it if you don't have enough strength, and you can't use your strength if you don't have good skills. Mentality is also very important. Have a mentality that transcends humanity. ​

Personal outlook :

I may not post any more articles recently. It has been two years since I resigned and stayed at home. I have experienced ups and downs in the foreign exchange market, and now I have learned something. Helplessly, the family is not rich, and money is needed everywhere in life, and now they can only find a job to make ends meet. I have stuttered since I was a child, and it became severe in high school due to the pressure of being excluded from school, and my stuttering is still serious now. My family is in this small town that is not well-known, and there are few financial jobs, and many people with good conditions are rushing to do it. Due to my own reasons, I can only find some jobs that don't talk much and do some physical work. Severe stuttering is already regarded as a disabled person at present, and people with stuttering do have obstacles in life and work.