Disclaimer: The content of this article is based on my own perception, and may not necessarily conform to the perception of others. First of all, I think that the essence of the trading system is a kind of trading thinking. Why do I say that? Most of people's behavior comes from their own thoughts, which may be a collection of multiple thoughts. So rather than building a system, it is better to build your own thinking. Since it is a thinking concept, as long as a system can be implemented and succeeded by several people, then this system can be imitated and learned.
So how to build your own system?
First purpose:
What is the purpose of my establishment of this trading system, such as consistent profits, or something that can be more quantified, such as the annualized income and so on. To give an example, designing a car, such as a car that can move, a car that can't move, a car that can drive safely, etc. are all purposeful;
Secondary functionality: what function is used to achieve purpose
You need to have a trading philosophy that suits you, secondly, your investment strategy must be effective, and finally safe, etc. Only by meeting these at least can you continue to make profits.
The third principle: Where do you need to start to realize this function, such as what rules to establish, or what parts, what principles need to be followed, etc.
What I said above is just a point of view, which only represents my cognitive point of view on the system. Maybe many people have their own thinking, which is not wrong, because as I said, the establishment of the system itself is a kind of thinking view;
So how to determine the goal that suits you , this step is very critical, because many people don’t know how to do it, but just ignore this thing and go to the third step. Some people set goals that are not suitable for them at all. Clear cognition, before you determine your goals, you must evaluate yourself, such as who I am, what I believe in, what are my advantages and disadvantages, ask yourself more questions, it is best to make a list, and Think about how to answer.
(Reference: I am a full-time trader. I believe that I can understand my situation. I believe that I can earn 50% of the annual profit through speculation in the future. I have a time advantage. I can open 12 hours a day. This time can be used for training, and making plans, I am healthy, open minded, strong learning ability, I fully accept that I am now 50% of the capital loss I can still be optimistic, I have a second career to obtain funds, my family Support me and so on. But my math ability is not very good, my computer programming level is not good, investment funds are not very abundant, I often need to withdraw funds from my trading account to fill living expenses, and I face comprehensive problems when managing client funds The pressure is often more than I can handle...)
So how do you determine the trading philosophy that suits you ? If a person without time establishes an arbitrage trading philosophy with a relatively short time period, what do you think is the probability of his success? You have to write your own list, identify your own strengths, and where you have strengths, choose your trading philosophy. For example, if you have little time, a stable personality, and strong determination, you can choose trend trading. For example, if you have a high degree of education, a high contact circle, systematic learning, and abundant funds, you can choose value investment. For example, if you are good at finding loopholes, you can trade arbitrage ( Such as different platform interest rate difference, time delay, etc.), there are bands, spread trading ideas, etc., there is no best, only the most suitable for you, you must find your own advantages from your step, in determining your own trading philosophy, in determining the philosophy Then develop your own trading principles.
So how to determine the principles that suit you : After choosing a trading idea, you must ask yourself questions.
For example, if you choose a trend trading idea, you can ask yourself from the following:
1 How do I spot a trend 2 Is there a trend 3 I trade in those trends 4 What do I do when the market is not trending
5. What are my market entry rules? 6. Where does the trend fail? 7. How do I manage it...Keep asking yourself questions until you can figure it out or solve it.
For example, choose a value investment trading philosophy:
1 How do you determine the value, whether my value has an advantage
2 What is the underestimation standard of the subject matter and when is it undervalued
3 What standard is my entry and exit based on?...
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