1. In futures trading, there is only one way to make long-term sustainable and stable profits: long-term, continuous, and stable output of a set of trading logic with positive return expectations. And to achieve this, the best way is to be systematized, because behind the systematization is the efficient output of your transaction logic.
2. If you want to conduct systematic transactions, you need a reason. It's not that I'm telling you directly that it's best that you can control it directly. Because you will encounter endless difficulties in the process of systematic trading, if you do not have a fundamental and deep understanding of why you do this, you will not be able to persist at all. Therefore, the root of everything lies in your trading cognition. You have to really understand this fundamental advantage.
3. Realizing that "the real futures trading is to deal with the uncertainty after holding positions", a futures trader finally opened the first door of the futures trading entry level and came into contact with the real futures trading technology.
4. If a futures trader wants to get started, he needs to have insight into two things: the uncertainty of the trend vs. the source of profit under uncertainty. Both are indispensable. The former allows us to give up the wrong way of trading, while the latter allows us to go on the right path.
5. In the field of behavioral finance, its perspective is to explain history, and their direction is to analyze what changes have taken place in people's emotions during historical trends, but they are unable to predict the future. If they could, they would not be economists, but top investment gurus.
6. Chinese economist Xue Zhaofeng said: "The price fluctuates around the value", which can neither be proved nor overturned.
Because when the price deviates from the value and when the price is in line with the value, there is no standard at all. Because the word value itself is a castle in the air.
7. The latest market price is the most invincible and authoritative existence. The personal valuations of all other people are not worth mentioning in front of him. No matter how authoritative he is, he is still a small speculator in front of the market. The latest price is the most reliable partner of our traders, and it is the most authentic and objective price.
8. If you want to make a profit in trading, the core logic is: when the market moves in a certain direction in an orderly manner, you must hold the correct position. Because when the market moves substantially in a certain direction, the direction is orderly, which can give us an advantage.
9. The essence of trading is trial and error. Trial and error requires a start, which is admission. In the entry rules, I recommend Lingyun-style entry:
the inevitable form of trial and error trends. The so-called inevitable forms are those forms that will definitely appear in the early stage if there is a trend trend behind.
10. As long as after the trend appears, the profit we can generate by taking advantage of the trend is greater than the cost of trial and error we pay when we make a mistake, we can realize profit. This is the core logic of all speculative transactions.
11. The fundamental source of positive returns: trial and error when entering the market, cut off losses and let profits run.
12. What the casino does is not to win money every time, it does not win every bet, and it often loses money, because it only has a small probability advantage in each of its games. However, it can be sure to win for a long time. Because after a sufficient number of times, the law of large numbers will work, and its probability advantage will be revealed.
13. Behind the profit method of a casino is a system. He has spread out a lot of games, and they have a little bit more advantage for gamblers in each game. It limits people's single betting amount, in fact, because the short-term uncertainty of a certain game is too large, which affects the stability of the overall system. Then, all that's left is to get people to engage.
In this way, this system can output its superior logic in a long-term, continuous and stable manner.
14. A futures trading system includes two parts: trading logic and fund management.
The former, responsible for the offense, needs to have positive return expectations. And the latter fund management, paid to be responsible for the defense. The composition of trading logic consists of two points: entry and exit. We have introduced the entry before, and I suggest adopting the Lingyun style entry: the inevitable form of the trial and error trend. When entering the market, it is necessary to cut losses and let profits run.
15. If you simply do this type of product, what should you do if its trend suddenly becomes very bad in the future? Therefore, general systematic traders are scattered in multiple varieties. Just like there is never just one game in a casino.
16. Quantitative systematic trading has a very strong threshold. This threshold is called shock and continuous loss.
17. Shocks and continuous losses are really good things. They have verified my loyalty to the concept. separate me from everyone else.
18. Our trading system is not invincible, it often stops losses, and it often loses money continuously under the influence of probability. At this time, if you don't have the most fundamental and essential belief in this system, it will collapse in minutes. He will feel that this strategy has failed? Is this strategy known to too many people? He will find a bunch of reasons to convince himself.
That's why I say that cognition is the most important thing. You must have a deep understanding of the profound logic behind this system before you can truly continue to operate it.
19. Many people think that knowing how to program is the advantage of systematic trading. But no. The real advantage of trading is always your deep insight into the fundamentals of speculation.
20. In the eyes of people without a trading system, the market is not very exciting because it has infinite changes. And in the eyes of systematic traders? The market trend can only be divided into two situations: the trend worth entering the market, and the trend not worth entering the market.
21. Soros said: If you often feel excited in the transaction, then you must not make any money. Really good transactions are boring. Because all changes are under your control, you know how to deal with any uncertainty, and you are already at ease.
22. All mentality problems come from the fear of the unknown. And establishing a futures trading system is the best way to eliminate the unknown. Because the so-called system is the best way to efficiently deal with future uncertainties.
23. The so-called trading belief is that the market makes me die, and I have to die.
Since we are speculators, we need to open positions, and to open positions we must face uncertainty. Since it is uncertain, there is always a way to kill you. You don't stop loss and die from the trend, you stop loss and die from heavy positions, single varieties die because there is no market for the variety, and your short-term light positions may die from three straight boards directly after opening a position.
Everything is possible, the key is which model you choose and are willing to take all possible risks for this model.
24. Multi-species, decentralized systematic trading, in my opinion, is the most anti-fragile trading method, and its death probability is the lowest. Because futures are born for volatility, the market will eventually fluctuate.
25. A person who trades in a systematic way will never be the first on the list, but he will never be the last on the list. You will always be above the middle level. Because you are not a gambler, you have a heavy warehouse, you are a casino, and the purpose is to make long-term sustainable profits. It's hard for you to be a star, but you are the eternal birthday. In this way, you can watch the tide ebb and flow, watch the stars fall, and stand forever. Because the logic of this method is too solid. Because people who trade in this way are themselves the market.
26. Establish a futures trading system, define the market that you want to do, enter the market when you meet the entry rules, and get out when you are satisfied with the market, and do not do the market that does not belong to you. Don't predict what the future market will be like, respect the price trend, and don't put all your eggs in one basket. Do what you can do to the extreme, establish your own trading system, cut off losses and let profits run, do a good job in fund management, and implement consistently. Then, wait for the market you want to appear and realize the income.
Therefore: know the trade-offs, do not speculate, do your best, and obey the destiny, so it is a speculative transaction.
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