What is a perfect trading system? Or is there a so-called perfect trading system?

If you define perfection as making money within a certain period of time in the future, then such a system does not exist. But we can have a relatively good trading logic.

Even the best trading system cannot be called perfect, because a trading system must have a time that is not suitable for its trend, and if you execute it consistently during this time, you will not make money. It is a fact that must be admitted. I still use the turtle trading rule as an example. Is it a perfect trading system? If you say it isn't, it does generate a lot of profits, and the traders who stick with it have had a fair amount of success. But if you say it is a perfect system, it is not necessarily true. The reason why few people use the Turtle Rule is that the drawdown of this system is very large, even reaching 50% in the worst case, and the core of this system The concept is to only focus on the big trend, and basically give up on the oscillating trend and the half-big or small trend. What will this bring? When there is no trend, there will be no profit for a long time, and the constant wear and tear will shrink the account, so ordinary people cannot use it at all.

So here is an important understanding of trading. Any trading system has advantages and disadvantages, and some disadvantages are unavoidable. Forcibly avoiding it will only cause greater disadvantages in another aspect that you may not see. When we make money, we must consider the possible unfavorable factors behind it, just recognize it.

Just today, a Huiyou asked me this question. I have said in many questions and answers that my own trading system is a deformed version of the sea turtle. The parameter was changed to fifteen. In addition, the Turtles have a floating win and increase position link, which can increase positions up to three times, and I do not have a position increase link. Other than that it's basically the same as a turtle.

The friend asked me why I changed the parameter to fifteen. Does fifteen have any special significance? Is the profitability stronger than twenty? I replied that fifteen has no meaning, and neither does the turtle's twenty, it's just a matter of personal preference.

Let's take a look at how fifteen and twenty affect the transaction? New highs and new lows on the 15th, when a profitable order is about to be closed, the profit he takes back is less than that on the 20th, that is to say, my method for every profitable order is less than that of the turtles. And earn more, this is fifteen's advantage. However, if there is a deep callback in a trend, it happens that the callback breaks the 15th parameter, but not the 20th parameter. My order was called back, but the Turtle's holding profit order is still there. If the market continues to move in the original trend after the market pulls back, then I will miss the following market. Therefore, the disadvantage of fifteen is not as earthquake-resistant as twenty, and it is easy to be in the trend. Get out on a pullback and miss the trend. Comparing these two points, you will find that the two parameters have their own advantages and disadvantages, and it cannot be said which one is necessarily good or which is necessarily bad.

Seeing this, many people are wondering whether there are optimal parameters, that is, they can vomit less and can withstand callbacks. So someone began to experiment with various parameters, and finally found that the parameter of seventeen was the most profitable in the past ten years. So I set the parameter to 17, and after using it for half a year, I found that the effect was not so good, so I went back to test the data of the past five years, and found that 23 was the best, so I may change it in the end. Here we have to realize a problem. There is no such thing as optimal for any parameter in a trading system. The optimal value you backtest is only the optimal value in history. In the next moment or in the next period of time, this "optimum" The parameter may not be this value, so here we can conclude that there is only relatively good trading logic, and there is no perfect trading system.

In the final analysis, whether a trading system can exert its power depends on the traders behind it who execute it. Whether the level of cognition of traders can match the corresponding trading system, and whether traders can discover their real trading logic when learning the trading system. This is where we need to improve. A trader with top-level cognition can create a trading system with positive expectations casually, but a trader with insufficient cognition, even if a top-level trading system is in front of him, he will not Uncontrollable.

Are you satisfied with this answer?

First of all, there is no perfect trading system. Secondly, a profitable trading system is a good system. The money here is calculated on an annual basis, and there are many things involved. If you have the opportunity, let’s talk privately.

Clear trading indicators, clear entry methods, clear take-profits, and clear stop-losses.

There has never been a perfect trading system, and there is no holy grail of trading. Every trading system has certain applicability and inapplicability. Those who do shocks die in the trend, and those who do the trend die in shocks. The trading system also needs continuous improvement and perfection, and the market is always changing.

Hello, the subject, the foreign exchange trading market itself is not a perfect existence, so the trading system evolved from it cannot be perfect. Because it is impossible for any set of trading systems to match any market. Therefore, when we trade, we only need to meet the conditions of our own trading system to enter the market. If we do not meet the conditions, we must not enter the market by force.

Speaking of this, some people may ask, is it possible to grasp all the market after knowing a lot of trading methods? My answer is definitely not. First of all, it is impossible for you to learn and master all trading methods. Just like Huang Rong in The Legend of the Condor Heroes, she has a photographic memory, is extremely witty, and knows the Nine Yin Manual by heart, but she can't learn all the martial arts in it. Do you think you will be smarter than Huang Rong? ​

Taking a step back, assuming you have learned all the trading methods, can you grasp all the market conditions? Just like the Nine Yin Scriptures and the Eighteen Palms of Subduing the Dragon, one is the ultimate yin and the other is the ultimate yang. ​In the foreign exchange market, is one bearish and the other bullish? Then when there is such a day, are you long or short? Will this make you go crazy, and in the end it will still be a bad deal.

Therefore, I personally think that in the foreign exchange market, one trick can be eaten all over the world. You only need to learn this trick, and then find the market that matches this trading method to trade. There are many varieties in the foreign exchange market, and there is always one that meets your trading conditions. ​

A 100% correct trading system, preferably one with no retracement, is a perfect trading system. is it possible? Of course not!

In fact, as long as it suits you and allows you to make stable profits, it is the perfect trading system. Of course, a perfect trading system also requires perfect execution and fund management, etc., otherwise you will still not be able to get rid of losses.

There is no perfect, trading is the same as life, there is no perfect, if you want to make money, you just do the right thing at the right time, rest at the wrong time, the right time is what you are good at, and the time you can understand best matches your trading system

Simple ➕ high winning rate, after the test of time and practice, the rest is the unswerving execution ability of the trader

There is no perfect trading system, only a perfect trading system. All functions are complete and optimized as much as possible.

Let me mention you again, try your best to make yourself better inside, because your system is with you, and your person and system are interconnected.

The word perfect does not represent the system well. Any system has flaws. These flaws are mainly produced according to the different needs of each person. They are suitable for long-term people. If you ask him to trade orders, it may be difficult. He has a heavy warehouse trend! A perfect system is a false proposition, and only a suitable system can be considered a sound system! It is the perfect system here that suits you and can make stable profits!

Then I will share my mechanical trading system: be a mechanical repetitive trader! What is a mechanical repetitive trading system, the following is a mechanical trading system.

The trading system is your strategy for entering the market and the way to deal with market fluctuations. Specifically, your thoughts include the following questions:

1. What to do if the strategy fails?

2. How much can I lose at most when opening a position this time?

3. What is the entry point and when is the entry time?

4. What should I do if a black swan happens?

5. At what point and when do you enter the field?

6. What should I do if the price does not go as expected?

Faced with these problems, your transactions will appear organized and planned a lot. You will no longer have emotional trading, impulsive trading, and will not be distressed by unexpected events in the market. The average correct rate of the top traders on Wall Street in ten years is only about 35%. How much can you do? Are you better than them right now? On the other hand, most speculators believe that there is a magic trick leading to the market: one indicator, one pattern, from which to profit, which is impossible. A successful trader is to find a trading system that suits him. This trading system is suitable for your own personality, with perfect trading ideas, detailed market analysis and overall operation plan. A systematic trading method is the correct way to make long-term stable profits. Let's look at the characteristics that successful speculators have in common:

1. They have a strong sense of risk: they often suffer losses in transactions, but none of them have caused them to bear excessive losses. This is the exact opposite of most losing traders, or rather, our nature. Risk control is first of all self-control.

2. The success rate of successful speculators in the international market can reach 35%, or even 50%. Their success is not because their correct forecast is the market price, but because their profitable positions are far higher than their losing positions. It also requires a great deal of self-control, and of course, an overall trading plan.

3. Successful speculators have different trading ideas. They have a lot of patience to do things that others are afraid to do, and they will wait very patiently for an opportunity that seems very slim. We know that speculation is precisely because of the opportunity to make a profit. It is difficult to do this without a tight grip on the ego. Many investors can easily analyze the market correctly. However, it takes a long time for them to achieve long-term and stable profit. The main content of the training is self-control. Self-control should be based on correct trading thinking. In the vast majority of cases, self-control is not a painful thing to do.

• Loss: Loss We can seek long-term and stable profits from two aspects.

1. Success rate: The profit and loss of each transaction are equal, but the number of times of profit is relatively large. For example, each profit and loss is 3%, but 10 transactions are correct 7 times and wrong 3 times, then the total profit is 12%.

2. Profit rate: the single profit is large and the loss is small, regardless of the success rate. For example, if you trade 10 times, lose 7 times, 3% each time, and make a profit 3 times, 10% each time, then the total profit is 9%. Of course, it is best to have both success rate and profit rate. Obviously, no one can accurately judge every market fluctuation in a relatively long period of time. Then, it is very normal to lose money in the transaction, and there is no need for us to avoid it. A real data is: the top traders on Wall Street in the United States have an average transaction success rate of about 35% in ten years. An important part of the trading system is how to treat losses. We usually think that the so-called loss can be divided into two different parts according to the trading situation, and their nature is also very different-

1. It is the loss in normal trading, that is to say, the loss caused by the error allowed in your market analysis. Generally speaking, it is impossible for us to find the precise position for each transaction, but a certain error is allowed, mainly because the movement trend of the price itself is reflected in a regional manner.

There is no way to avoid this kind of loss, and there is no need to avoid it. As long as you can control it, it will never have a significant impact on your trading capital.

2. There are human or non-human factors in the market, which lead to crazy changes in market prices, and the direction is not good for you. In theory, such risks are difficult to avoid. However, in daily trading, we can develop a good trading habit of stop loss to avoid it. Judging from the historical situation, the market will not go unilaterally for a long period of time. Therefore, in the transaction, no matter whether the general trend is favorable or unfavorable, we can find opportunities to enter and exit the market calmly. Do not act hastily. If there are major mistakes in the transaction, the first thing to do is not to panic. The best way is to clear all positions, stay away from the market for a while, remember, the exchange is not closed tomorrow. It is a fact that any trader, in all transaction records, will include two parts: profitable transactions and losing transactions. That is to say, there is no need to be complacent about profitable transactions, and there is no need to be dejected about loss-making transactions. Long-term and stable profits are the ultimate goal of speculators. The simple trading system explains that the simplest trading system includes at least four parts: buying, selling, stop loss, and position control. As speculators, we are taking advantage of price fluctuations in the market to our advantage. Only when there are fluctuations in the market that you can control, can you make a profit-it seems simple, but this is very, very important-that is, some fluctuations you can control, and others You can't grasp the fluctuations, or you don't need them at all, such as downward fluctuations, or fluctuations with very small amplitudes.

Therefore, trading is about participating in the fluctuations that your system can participate in, but not all of them.

1. Buy

A transaction is a process, not a simple forecast. Simply put, you have to judge when to buy, how much to buy, how to deal with your position if the market does not develop as you imagined, and how to deal with it if the market develops as you imagined.

In my trading system, there are four principles about buying:

1. Buying in a simple uptrend;

2. Buy when a downward fractal appears during the callback of a complex upward trend;

3. Buy when breaking through the previous high;

4. Buy at the lower edge of the pause in the sideways trend;

These four principles are the basic principles of buying transactions. When the market does not have one of these four situations, I will not consider buying at all. What I mean by writing this is not to ask you to do the same, but to say that as a trader, you also need similar principles in your trading system. In addition, you also need a considerable selling principle.

Sell, the following introduces several ways to sell and close positions

1. Target method:

It is to set a profit target before entering the market. This method is risky. If the market direction fails to reach the target position for a long time, or if it operates in the opposite direction, the loss will be huge.

2. Pyramid plus method:

It is the practice of investors increasing their bargaining chips in another price area when the situation of entering the market to make profits continues to be favorable.

3. The method of gradually moving the "stop loss":

When we are in the right direction, don't close the position at the current price immediately, but keep raising the stop loss price. If the market price rises all the way but does not reach the stop loss price we set, then we can continue to wait for a bigger one Profit, once the price increases further, we can change the previous stop loss price to a higher price, and we will not close the position until the market callback price reaches our stop loss price. This is what I call moving your "stop loss" gradually.

4. Step by step liquidation method for profit:

It is the practice of investors to liquidate part of their positions to realize profits after entering the market with profits, and continue to hold the remaining profitable positions in order to win greater profits.

This method is mainly to reduce the previous positions. When investors have made profits and it is difficult to judge the market outlook, they are worried that the existing profits will disappear, so they will collect part of the profits first, and continue to hold the remaining positions. This method is more suitable for those who are afraid of taking risks.

3. Stop loss

Stop loss, no matter what kind of trading system or trading principle, mistakes may occur. How to deal with mistakes is another important sign of a trader's maturity. Traders have an instinct, or inner greed: they hope that all their transactions are correct, and once they make a mistake, they will look for various reasons to justify themselves. It's ridiculous when you think about it seriously. You are responsible to yourself, not to someone, so why deceive yourself? How about forgiving yourself? So what if you don't forgive yourself?

1. The importance of stop loss

The importance of stop loss. As investors, we are facing a huge capital market that is not transferred by our will. The turmoil in the market not only hides huge profit margins, but also has the risk of making you lose everything. It needs to be clear that there are always opportunities in this market, but once you lose all your money, you will lose the ability to look for opportunities again. Therefore, in order to avoid risks, it is not only necessary but also very important to set a stop loss.

2. The method of stop loss

(1) Fixed stop loss method

This is the simplest stop loss method, which refers to setting the loss amount to a fixed ratio, and once the loss is greater than the ratio, the position will be closed in time.

It generally applies to two types of investors:

① Investors who have just entered the market;

②Investors in riskier markets (such as leveraged markets)

The mandatory effect of fixed stop loss is relatively obvious, and investors do not need to rely too much on the judgment of the market. The setting of the stop loss ratio is the key to the fixed stop loss.

③ The maximum loss an investor can bear. This ratio varies depending on investor mentality and economic affordability. It is also related to investors' profit expectations.

(2) Technical stop loss method

Combining stop loss setting with technical analysis, after eliminating random market fluctuations, set stop loss orders at key technical positions, so as to avoid further expansion of losses. Generally speaking, the use of technical stop loss method is nothing more than betting big profits with small losses. Through the analysis of the price operation form, once the price is found to break the position, it will resolutely stop the loss. In actual combat, investors should also pay attention not to reach out for flying knives after the stop loss. After the price downward trend is established, they must hold on to their wallets and come forward to grab a rebound during the downward trend. In particular, the immeasurable and slightly intertwined decline of yin and yang makes investors often have the illusion of stop loss, thus missing the opportunity to stop loss early and get out of the market. There are:

① Trend tangent stop loss method:

Including the price effectively falling below the trend line; the price effectively breaking the upper and lower rails of the triangle shock; the price effectively falling below the lower rail of the ascending channel, etc.

② Morphological stop loss method:

Including the price breaking through the strong line of the head shape such as the head and shoulders top, M head, arc top, etc.; the price jumps downward and breaks through the gap, etc.

③ K-line stop loss method:

Including two yin and one yang, yin and two yang and yin, or guillotine with one yin and three lines, and evening star, piercing head and foot, shooting star, double flying crows, and three crows hanging Typical peaked K-line combinations such as treetops, etc.

④Interval stop loss method:

The intensive transaction area in the interval will have a direct support and resistance effect on the stock price. After a solid bottom is broken down, the original support area will often be transformed into a resistance area. Set the stop loss position according to the transaction-intensive area of ​​the interval, once the position is broken, the stop loss will be out immediately. Trading psychology, the weakness of human nature Most losers in the market lose to themselves. Man's greatest enemy comes from within. Looking at the market charts, the huge gap between historical peaks and valleys brings great opportunities to smart investors. The investment market is different from any other aspect of social life. When people are engaged in any other social occupation, the weakness of human nature can still be covered up in some way, but in the investment market, everyone must fully express their human weakness come out. The so-called public bidding is actually a public display of humanity. The weaknesses of human nature are mainly manifested as greed and fear. The weaknesses of human nature are mainly manifested as greed and fear. The specific external manifestations of greed are: 1. Excessive trading expects to get rich overnight. 2. Earn small money and lose big money. When making money, you feel that "two birds in the forest are not as good as one bird in the hand", and you are eager to take profits. When losing money, we hope that the price will rise to a level before making a move, which will lead to more losses. The specific manifestation of fear is: when the market has repeatedly climbed to or near the highest point, you are afraid that you will miss the bus instead of buying if the market is already very fragile. And there is pessimism around the long-term market decline, fearing that the end of the world will come, and shedding tears. The above-mentioned market phenomenon is constantly repeating around us. Outstanding figures in human history such as Newton, Einstein, and Roosevelt all suffered setbacks in securities investment. Newton said afterwards: "I can calculate the orbits of celestial bodies, but I cannot calculate the madness of human nature." It can be seen from this that it is rare to remain rational and sober in the market, and to become a winner, one must overcome one's own weaknesses. Dare to insist on independent thinking, don't follow what others say. As Buffett said: "We also have fear and greed, but we are fearful when others are greedy, and we are greedy when others are fearful." Human weakness in trading, but this is the inherent nature of human beings. It is very difficult to completely overcome, but their degree of performance can be controlled, and successful investors can successfully control them within a moderate range, so that they do not affect rational thinking. Trading psychology misunderstanding.

1. Subjective dogma. Everyone participating in the trading market will have their own set of ideas. They will always artificially think that certain things will happen and some things will not. However, subjective determination and rigid dogma are taboo for investors, because There is only one market, and there is only one price trend. "The market is always right." If your own views conflict with the market, you must study where your mistakes are, and you cannot mean that the market is wrong. It is important to be objective. As a trader, the most taboo is to be smart. If something happens suddenly, the event will definitely be displayed in the violently fluctuating price. As long as you don’t make subjective assumptions, make bold assumptions, carefully verify, step by step, it is not too easy to make money ... But if you want to make huge profits, you need to take big risks. Long-term, stable and continuous victory over the market is nothing but wishful thinking of some people.

2. Repeat the same mistakes

Repeat the same mistakes, "people are valuable to have self-knowledge", and only by analyzing their own mistakes can they continue to improve. When people are successful, they always think that they are smart, and it is rarely attributed to luck. However, when people make mistakes, they always use bad luck as an excuse. They are afraid of admitting and analyzing mistakes, so that they will relapse into the old ways and make similar mistakes again. Successful investors can face the reality from a mistake, analyze the reasons, learn lessons, and take measures to avoid repeating the same mistakes. "Make a mistake - correct it - make another mistake - correct it again", even the most successful investors have gone through this process. There is no one who has never made a mistake in the foreign market. It is not terrible to make mistakes, but what is terrible is that one does not know how to correct one's mistakes after making one, and repeats one's mistakes again and again. Generally, in market competition, those who are eliminated from the market are not killed by one landmine, but are often killed by several identical landmines.

3. Be stubborn

Stick to one's own opinion, "Threesomes must have a teacher", the investment market is changing, and it is often beneficial to ask people around you for advice. "Threesomes must have my teacher", not only to ask the winners for advice, but also to discuss more with the losers, "History will repeat itself", the failure of others today may become your own failure tomorrow, the winners certainly have good experience, But the losers have more bloody lessons. Avoiding failure in market investing is often more important than achieving success. But asking for advice does not mean accepting everything. "Take advantage of others and make up for one's own shortcomings" is the best policy.

Fourth, different hands and brains

Different hands and brains, some investors have already made investment plans and strategies in advance, but when they step into the real market, they are influenced by the external environment. For example, he decided in advance to buy immediately when the price continued to fall, but when he looked at the market, everyone was selling, and he withdrew his buying hand. There are also people who have no plan to buy at all, but when everyone rushes to buy, he can't stand the temptation. Some people have to wait for a cheaper price, and seem to think that the current price is too high to be worth buying. It should be cheaper to enter the market. Ever since, the more equivalence, the higher the price, and the more you wait, the less you dare to enter the market. As a result, the price skyrocketed, but he waited for the whole process in vain.

5. Herding effect

Herd effect, investment, more people do not necessarily lead to the crowd, but contradict the opposite theory, when everyone rushes to buy, the general trend will reach its peak, and when everyone rushes to cut meat, the general trend will end, so the herd Often losers. Get out of the misunderstanding of conformity, and you will realize the beauty of "winding paths leading to seclusion" and the joy of "everyone is drunk, but I am alone". Investors may be busiest when the market is skyrocketing or plummeting. Once the market is beyond everyone’s expectations, as long as one person cuts his position first, the others will rush back, forgetting all plans, methods, and principles, lest they be half a step too late. They don't know that this is the time when they need to calm down the most. According to the statistics, the direction of everyone's swarming is often wrong. Maybe it's just a joke, but there are facts to rely on. When the market is good, the whole position is sold out, and when there is a turmoil, the practice of falling into a trap is especially bad in the investment market. Running fast is not necessarily a good thing. You may be able to make a profit once or twice, but if you run too much, it may not be so.

6. Investment Hunger

Hungry for investment, some investors in the market can't bear to hold too much principal in their hands, and enter the market casually. Experience, impatient, when regrets have become a backing for others, have you ever thought that "investment hunger" can actually be avoided.

There are two reasons for exploring investment hunger:

1. Intervention too early: This is because investors did not understand the level trend of various investment contracts in the market, and then found that when they intervened too early, they sold and bought again, and lost many good opportunities to make money.

2. Lack of patience: Many market funds like to use the staged speculation method when trading, that is, to wash the market in sections, so that the chips can be changed hands moderately, and the pressure from early investors to take profits will be reduced. At this time, if ordinary investors can distinguish the tricks of the fund to create false appearances and hype investments, patiently keep the holding period in hand, don't look at the height of the mountain, and correct the profit point in a timely manner, they will not be deceived, and may even be possible. Take advantage of the situation and make money from it.

Coping skills:

1. Adhere to your own judgment. It is better to rely on yourself than to rely on the sky and the earth. The price fluctuation is affected by many complex factors, among which the following psychology of the market has a great influence on the price. Investors with this kind of mentality are afraid of falling behind when they see others follow suit and buy. If they don't understand the market rules, when they see others stop losses and leave the market, they don't ask others why they cut their positions, so they get confused. Confidently close out the list in your own hands with great potential in the market outlook. In this way, you will often be fooled by those ill-intentioned people who make waves in the market, and you will often be swallowed up by these people and regret it. Therefore, investors should establish their own awareness of trading and cannot follow the will of others. Stick to your own judgment, study the market more and listen less to the news.

2. Reduce transactions after consecutive successes

There is no long-term winning general in trading. After consecutive successes, it is best to be calm and calm. Adjust your body and mind, look at the principled things, and study whether there are any deficiencies in the successful record. Especially when people around you applaud your success, it may often be the beginning of failure. Smart investors often start to gradually reduce the frequency of transactions and the proportion of capital investment after success, especially when they are successful continuously, and start to gradually reduce the frequency of transactions and the proportion of capital investment, or simply take a break. It is also appropriate to relax after making money. When you are energetic, fight again In the foreign exchange market, the risk of failure caused by overheating has been avoided, and sufficient energy has been saved.

3. Patience is more important than determination. It is best to laugh at the end, and you will lose if you are anxious. Impatience and impatience are common problems among many investors. Because the main purpose of investors entering the market is to make money. It is understandable to be eager to make money and eager to make a fortune. The key is that impatience itself does not help, but is harmful. "Impatience" is the biggest psychological misunderstanding that affects investment success, while "patience" is the best psychological quality of investors. The purpose of investment is to focus on future income, and the meaning of investment contains the time factor, so investment requires time and patience. Practice has shown that it is difficult to get good results if you are eager to get rich and chase ups and downs, but are prone to operational errors. "Static braking" is the best choice when you don't understand. Wait patiently, the last laugh is the best.

4. Overcome greed. Greed itself is not a mistake. If you take it to the extreme, buying for the sake of making money is greedy, not buying for fear of losing money is also greedy, buying half and keeping half of the money is greedy for both wanting to make money and afraid of losing money, so It is said that every investor who participates in market investment has more or less greedy psychology. The key question is not whether to be greedy or not, but whether to be greedy or not. Enough is enough, greed is greedy, and insatiable greed without regard to reality becomes greed, which is a psychological misunderstanding. There is a very vivid metaphor, investing is like eating fish, you have to remove the fish head, not the fish tail, and only eat the body of the fish. If you don't have to buy at the lowest point and don't pursue selling at the highest point, then foreign exchange investment is a very easy and natural thing. Investment is the same as playing chess. It is a wise choice to give up some local gains and losses to obtain the overall initiative and advantages.

5. Overcome gambling. Investors with a gambling mentality always hope to make a fortune. They can't wait to catch a big bull market so that they can make a lot of money. Once they make a profit in the investment market, they will probably be dazzled by the victory and raise their bets like a gambler. Lose it all. People are often the most relaxed when they are successful, and their sense of accomplishment is most easily reflected in the market, and this kind of time is often the most likely to lead to failure, and extreme joy leads to sorrow. The ancients have a saying that "a gentleman is knowledgeable, but if he learns every day, he can't do what he knows." If you want to become a long-term victorious general in the market, you must develop a mentality that is not arrogant in victory and not discouraged in defeat. The importance of money management, people often say, successful trading = psychological control + money management + analysis system Successful trading = psychological control + money management + analysis system. However, in fact, most people ignore the issue of money management. In trading, we always look for our edge. This is why traders develop systems. Having a trading system that is 70% profitable is a great advantage. But since your trading system is only profitable 70% of the time, does this mean that out of every 100 trades, you have 7 out of 10 trades that are profitable? uncertain! How do you know which 70 out of 100 trades are profitable? you do not know. You could lose 30 trades in a row and win the next 70 trades. Your trading system is still 70% profitable, but you have to ask yourself, "After losing 30 trades in a row, can you still trade?" This is why money management is very important. No matter what system you use, you can be on a losing streak. Even professional poker players can suffer losing streaks, but in the end they are profitable. The reason is that good poker players practice bankroll management because they know that they won't win every round. They only risk a fraction of their total bankroll, so they can survive losing streaks. This is what you as a trader should do too. Drops are also part of the deal. The key to being a successful trader is having a trading plan that will allow you to survive periods of significant losses. Your trading plan contains money management rules. Only risk a fraction of your "trading capital" to survive a losing streak. If you follow strict money management, you will be the bookmaker and in the end, "you always win." Fund management and stop loss, there is a saying: It is the tragedy of retail investors not to stop loss. It may apply to some people, but in a general sense, not being able to stop losses is one of the main reasons why retail investors have always been retail investors. People always like to make quick profits and leave a little room for losses. The result is to truncate profits and expand Big loss. How to achieve capital appreciation in the long run? Let us remember these figures: a 20% loss requires 25% profit to break even, which is relatively easy; a 40% loss requires 66.7% profit, which is difficult to achieve; A 100% profit is required, and it is almost impossible to turn a loss. As far as my personal experience is concerned, a 20% loss should be the limit of loss. However, this kind of stop loss is not fund management, because this kind of stop loss does not tell you how much to sell, and it is impossible to control the risk through position adjustment. Money management is an important part of a trading system, essentially the part of the system that determines the size of your positions. It can determine how much profit you can make and how much risk you can take in trading the system. We cannot simply replace the most important part by setting such managed stops. Money Management Strategies - Return to Risk Ratio, Return to Risk Ratio Another way to increase your chances of winning is to trade when your potential profit is 3 times your risk. If your reward-to-risk ratio is 3:1, you have a great chance of winning in the end. Even if you only make a profit on 50% of your trades, you will still be able to make a profit of 10,000 yuan. Remember that when you trade when your reward-to-risk ratio is high, your chances of winning are greater, even if your winning ratio is lower. but……. There is a price to be paid for setting a high benefit-risk ratio. On the surface, setting a high risk-reward ratio is a good idea, but think about the situation when it is used in actual situations. Suppose you are a scalper and you only want to risk 3 pips. With a 3:1 reward-to-risk ratio, you should get 9 points. Your chances of making a profit are slim because you pay the spread. If the spread of your product is 2 points, then you have to make a profit of 11 points, so you have to accept a 4:1 profit-risk ratio. But the price of the product will fluctuate by 3 points within a few seconds, and you will stop the loss and leave the market before you can finish saying the word "help". If you reduce your position size, you can expand your stop loss to maintain your ideal reward-to-risk ratio. If you increase your pips and you want to risk 50 pips, you need to make a profit of 153 pips. In this way, your reward risk ratio will be close to 3:1. Not so bad anymore, right? In real situations, the benefit-to-risk ratio is not static. They have to be adjusted based on the time frame, market environment and your entry/exit positions. The profit-risk ratio of position trading can be as high as 10:1, while the profit-risk ratio of ultra-short-term trading is as low as 0.7:1. It is difficult to achieve a 7% profit; and a loss of more than 50% requires a 100% profit, and it is almost impossible to turn around the loss. As far as my personal experience is concerned, a 20% loss should be the limit of loss. However, this kind of stop loss is not fund management, because this kind of stop loss does not tell you how much to sell, and it is impossible to control the risk through position adjustment. Money management is an important part of a trading system, essentially the part of the system that determines the size of your positions. It can determine how much profit you can make and how much risk you can take in trading the system. We cannot simply replace the most important part by setting such managed stops. Money Management Strategies - Return to Risk Ratio, Return to Risk Ratio Another way to increase your chances of winning is to trade when your potential profit is 3 times your risk. If your reward-to-risk ratio is 3:1, you have a great chance of winning in the end. Even if you only make a profit on 50% of your trades, you will still be able to make a profit of 10,000 yuan. Remember that when you trade when your reward-to-risk ratio is high, your chances of winning are greater, even if your winning ratio is lower. but……. There is a price to be paid for setting a high benefit-risk ratio. On the surface, setting a high risk-reward ratio is a good idea, but think about the situation when it is used in actual situations. Suppose you are a scalper and you only want to risk 3 pips. With a 3:1 reward-to-risk ratio, you should get 9 points. Your chances of making a profit are slim because you pay the spread. If the spread of your product is 2 points, then you have to make a profit of 11 points, so you have to accept a 4:1 profit-risk ratio. But the price of the product will fluctuate by 3 points within a few seconds, and you will stop the loss and leave the market before you can finish saying the word "help". If you reduce your position size, you can expand your stop loss to maintain your ideal reward-to-risk ratio. If you increase your pips and you want to risk 50 pips, you need to make a profit of 153 pips. In this way, your reward risk ratio will be close to 3:1. Not so bad anymore, right? In real situations, the benefit-to-risk ratio is not static. They have to be adjusted based on the time frame, market environment and your entry/exit positions. The profit-risk ratio of position trading can be as high as 10:1, while the profit-risk ratio of ultra-short-term trading is as low as 0.7:1. It is difficult to achieve a 7% profit; and a loss of more than 50% requires a 100% profit, and it is almost impossible to turn around the loss. As far as my personal experience is concerned, a 20% loss should be the limit of loss. However, this kind of stop loss is not fund management, because this kind of stop loss does not tell you how much to sell, and it is impossible to control the risk through position adjustment. Money management is an important part of a trading system, essentially the part of the system that determines the size of your positions. It can determine how much profit you can make and how much risk you can take in trading the system. We cannot simply replace the most important part by setting such managed stops. Money Management Strategies - Return to Risk Ratio, Return to Risk Ratio Another way to increase your chances of winning is to trade when your potential profit is 3 times your risk. If your reward-to-risk ratio is 3:1, you have a great chance of winning in the end. Even if you only make a profit on 50% of your trades, you will still be able to make a profit of 10,000 yuan. Remember that when you trade when your reward-to-risk ratio is high, your chances of winning are greater, even if your winning ratio is lower. but……. There is a price to be paid for setting a high benefit-risk ratio. On the surface, setting a high risk-reward ratio is a good idea, but think about the situation when it is used in actual situations. Suppose you are a scalper and you only want to risk 3 pips. With a 3:1 reward-to-risk ratio, you should get 9 points. Your chances of making a profit are slim because you pay the spread. If the spread of your product is 2 points, then you have to make a profit of 11 points, so you have to accept a 4:1 profit-risk ratio. But the price of the product will fluctuate by 3 points within a few seconds, and you will stop the loss and leave the market before you can finish saying the word "help". If you reduce your position size, you can expand your stop loss to maintain your ideal reward-to-risk ratio. If you increase your pips and you want to risk 50 pips, you need to make a profit of 153 pips. In this way, your reward risk ratio will be close to 3:1. Not so bad anymore, right? In real situations, the benefit-to-risk ratio is not static. They have to be adjusted based on the time frame, market environment and your entry/exit positions. The profit-risk ratio of position trading can be as high as 10:1, while the profit-risk ratio of ultra-short-term trading is as low as 0.7:1. 1. In the end, you have a great possibility of profit. Even if you only make a profit on 50% of your trades, you will still be able to make a profit of 10,000 yuan. Remember that when you trade when your reward-to-risk ratio is high, your chances of winning are greater, even if your winning ratio is lower. but……. There is a price to be paid for setting a high benefit-risk ratio. On the surface, setting a high risk-reward ratio is a good idea, but think about the situation when it is used in actual situations. Suppose you are a scalper and you only want to risk 3 pips. With a 3:1 reward-to-risk ratio, you should get 9 points. Your chances of making a profit are slim because you pay the spread. If the spread of your product is 2 points, then you have to make a profit of 11 points, so you have to accept a 4:1 profit-risk ratio. But the price of the product will fluctuate by 3 points within a few seconds, and you will stop the loss and leave the market before you can finish saying the word "help". If you reduce your position size, you can expand your stop loss to maintain your ideal reward-to-risk ratio. If you increase your pips and you want to risk 50 pips, you need to make a profit of 153 pips. In this way, your reward risk ratio will be close to 3:1. Not so bad anymore, right? In real situations, the benefit-to-risk ratio is not static. They have to be adjusted based on the time frame, market environment and your entry/exit positions. The profit-risk ratio of position trading can be as high as 10:1, while the profit-risk ratio of ultra-short-term trading is as low as 0.7:1. 1. In the end, you have a great possibility of profit. Even if you only make a profit on 50% of your trades, you will still be able to make a profit of 10,000 yuan. Remember that when you trade when your reward-to-risk ratio is high, your chances of winning are greater, even if your winning ratio is lower. but……. There is a price to be paid for setting a high benefit-risk ratio. On the surface, setting a high risk-reward ratio is a good idea, but think about the situation when it is used in actual situations. Suppose you are a scalper and you only want to risk 3 pips. With a 3:1 reward-to-risk ratio, you should get 9 points. Your chances of making a profit are slim because you pay the spread. If the spread of your product is 2 points, then you have to make a profit of 11 points, so you have to accept a 4:1 profit-risk ratio. But the price of the product will fluctuate by 3 points within a few seconds, and you will stop the loss and leave the market before you can finish saying the word "help". If you reduce your position size, you can expand your stop loss to maintain your ideal reward-to-risk ratio. If you increase your pips and you want to risk 50 pips, you need to make a profit of 153 pips. In this way, your reward risk ratio will be close to 3:1. Not so bad anymore, right? In real situations, the benefit-to-risk ratio is not static. They have to be adjusted based on the time frame, market environment and your entry/exit positions. The profit-risk ratio of position trading can be as high as 10:1, while the profit-risk ratio of ultra-short-term trading is as low as 0.7:1. 1. Not so bad anymore, right? In real situations, the benefit-to-risk ratio is not static. They have to be adjusted based on the time frame, market environment and your entry/exit positions. The profit-risk ratio of position trading can be as high as 10:1, while the profit-risk ratio of ultra-short-term trading is as low as 0.7:1. 1. Not so bad anymore, right? In real situations, the benefit-to-risk ratio is not static. They have to be adjusted based on the time frame, market environment and your entry/exit positions. The profit-risk ratio of position trading can be as high as 10:1, while the profit-risk ratio of ultra-short-term trading is as low as 0.7:1.

Transaction analysis methods, currently there are several analysis methods in the market, roughly three, these three analysis methods will provide guidance for you to engage in foreign exchange transactions in the market. There are currently three basic market analysis methods:

1 Technical analysis method

2 Fundamental Analysis

3 Sentiment Analysis

Of the three analysis methods above, there is never-ending debate about which is better, but the truth is, you need to know all three. For trading, if you are deficient in any of the above three analysis methods, and you ignore the importance of this analysis method, then the possibility of your trading failure will be very high. Technical analysis is the use of mathematical and statistical methods, through the study of historical data, so as to grasp the current trend, and follow the trend for analysis and operation. Theoretical basis of technical analysis:

1. Price action

Price action reflects, and reflects all inclusive.

2. The price evolves in a trend way, and fluctuates in a trend way.

3. The history of prices and historical trends will repeat themselves. Technical analysis includes many methods, which can be roughly divided into the following three categories:

dachshund

Fundamental analysis is to conduct comprehensive research and analysis on the above factors, and predict the future price trend of currency pairs. From an economic and financial perspective, fundamental analysis mainly focuses on the macroeconomic components, such as economic growth, inflation, unemployment, etc., on the impact of our ongoing transactions. In particular, fundamental analysis gives us an indication of how prices "should" or might react to an economic indicator. We can analyze fundamental data from different economic indicators. Fundamental data can be seen in the release of existing home sales data from the Federal Reserve, but also in the possibility that the European Central Bank may change its monetary policy. The release of fundamental data to the outside usually changes the market's view on the economic situation, and investors and speculators will respond to the data accordingly. Before the interest rate decision is announced, investors can start to price in the rate hike expectations hours or even days in advance. In fact, after the release of some major economic data, the market volatility usually exceeds 100 points in a short period of time, which provides a good profit opportunity for those brave traders. Sentiment analysis, when trading, traders express their individual opinions on the trades they make. But sometimes, no matter how convinced a trader is that the market will move in a certain direction, their trades may end up failing. Traders must realize that the overall market is the combined view of all market participants. This feeling shared by all market participants is what we call market sentiment. In order to understand the trading market, first you need to know about the major players in the market. These actors can be divided into the following three main categories:

1. Commercial traders (hedgers)

2. Non-commercial traders (large speculators)

3. Retail traders (small speculators)

As a trader, the analysis of market sentiment is an integral part of your trading work. Are the economic indicators showing that the market will rise? Are traders pessimistic about the economy? We cannot tell the market that the situation should develop as we think. All we can do is react to what is happening in the market. It should be noted that using the market sentiment analysis method does not give us the exact entry and exit points for each trade. However, don't despair! Using market sentiment analysis can help you decide if you should go with the market trend. Of course, you can also always combine market sentiment analysis with technical and fundamental analysis methods to make better trading decisions. Plan your trade, trade your plan! Formulation of a trading plan: The trading plan determines what to do, why to do it, when to act, and how to act. It covers your trading personality, expectations, risk management criteria and trading system. If you follow a trading plan, it will help you reduce the mistakes you make in your trading and keep your losses to a minimum. After all, if you don't have a plan, you're ready to fail. With a trading plan, you can know whether you are going in the right direction. You will achieve stable profits in an orderly manner.

There is no perfect, any trading system has its own flaws. People need to adjust.

I’m using this year, let’s say it’s a trading system. It has withstood the dangerous fluctuations in the first half of the year, with a profit of 40%. There is no trading opportunity at all.

Either temporarily adjust and do more short-term, or wait. I chose to wait, so I made a total of 4 orders in June, no, 5 orders. A long order in GBP that was hung up the night before was sold, haha ​​I felt like I was going to be caught again. Whatever, I'm tired.

A system that suits you is a perfect system, just like a weapon. For Monkey King, the golden cudgel is perfect, and for Zhu Bajie, the nine-toothed rake is perfect. Neither is perfect if used interchangeably!

The same goes for the trading system, there are short-term systems, long-term systems, systems for large funds, and systems for small funds. The one that suits you is the perfect one.

The systems I use are all developed by myself. They are simple and efficient, easy to understand and easy to use. For me, they are perfect!

There is no perfect trading system, I think it is just a trading system that suits you

​A perfect market trading system basically does not exist in the market. What exists is to constantly improve your own trading system and trading philosophy in the pursuit of a perfect market trading system. This is something that investors need to understand. If you can't figure it out, adjust yourself in time.

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Generally, 70% of the market is in a volatile market, and 30% of the time is in a trending market. Therefore, our investors can only make money by grasping the trend. Whether you are doing intraday fluctuations or daytime trends, timely Stop loss is the first task. There is no trading system that is suitable for both trending market and volatile market. The most important thing is that you can identify the current market stage in time based on your experience and analysis. , if it is a trending market, you can use your trend trading system, if it is a volatile market, you can use your oscillating trading system, no one can always judge right, if the judgment is wrong, you only need to stop the loss, and timely Acknowledge your mistake.

perfect trading system

Entry, stop loss, and stop profit must follow the rules within the system, and no human intervention is allowed. Make a good trading plan. When the market is in your plan, execute according to the rules. If it exceeds the plan, wait and see. It’s a big taboo to make a sudden move. If market fluctuations can cause changes in your mind, you’ve already lost, and you’ve lost your profit. Maybe you’re right this time, but it’s all luck, and it has nothing to do with the stability of your system. Stable The system cannot contain any irrational analysis

Perfection is only relative. First of all, you need to establish a system that can sustain stable profitability and be able to persist for a long time. My goal is to be consistently profitable for 12 consecutive months. Then improve and improve on this basis.

A system with high winning rate + high profit-loss ratio can be called a perfect trading system.

A system that can keep improving with the development of the times and make continuous and stable profits is considered perfect.

Easier said than done, let's work hard together😄

The system is built by people, no one is perfect, and no one or thing is perfect.