Reading guide:We know that everyone's trading system is personalized,It is the crystallization of his hard work,It is the product of personalization,Without a period of learning and understanding,Others can't control it。 But they all have some common features, which are common to every trading system, and please read on to see what they are. 01 What is a trading system?
The trading system is the materialization of systematic trading thinking. Systematic trading thinking is a concept, which is embodied in the overall observation of price movement and the continuous observation of time in the market judgment analysis, and is manifested in the comprehensive embodiment of the three major elements of trading object, trading capital and trading investors in the decision-making characteristics.
A trading system is a set of rules that can achieve stable profits in the trading market. It includes scientific money management, effective analytical techniques, and good risk control. Its ultimate goal is to achieve stable profits for traders.
It can be divided into subjective trading systems, objective trading systems, and trading systems that combine both. A trading system is the brainchild of a trader, and it embodies the trading philosophy of a trader. Therefore, it is not universal, i.e. a trading system can only be maximized in the hands of its creators. Therefore, for traders, only by creating their own trading system can they embark on the road of stable profits.
Therefore, if a trader wants to succeed, he must first establish his own trading system, so how to build his own trading system?
02 How to build your own trading system
Before stable profits, the least cost of establishing a trading system must be to first conduct a large number of review transactions, through the review of simulated trading, to establish a complete profitable trading system, and constantly re-understand the practical significance of each step of the trading system, as well as the logic of the whole system to make money. And the design logic of the system is based on the market profit logic and market philosophy, so that the trading system is more in line with the operation law of the market, and can make money in the trading market. The specific design elements of the trading system are as follows:
1. Determine the trading time period
2. Define trends and identify trends
3. Risk control (entry position management)
4. Define the entry and exit points and the defining conditions for adding or decreasing positions
5. Write down your system and stick to it strictly!
Through continuous review operations and continuous understanding, you can quickly internalize the trading system into your own concept and make money, so that you can be at ease and confident, in order to fully establish confidence in the trading system, and then continue to make profits in the real futures market. It is an irrefutable truth that you can only succeed if you believe in your trading system.
We know that everyone's trading system is personalized, is the crystallization of his hard work, is the product of personalization, without a period of learning and understanding, others can not control. But they all have some common features, which are common to every trading system, and please read on to see what they are.
03What are the characteristics of the trading system?
First, the trading system should have integrity and objectivity (that is, in line with the laws of the market) The so-called integrity refers to a complete set of entry and exit rules, including entry, stop loss, addition and reduction of positions, exit, etc., objectivity refers to whether the trading rules you rely on are in line with the operation of the market, the basis for buying and selling must be, but if the basis for buying and selling is out of the market operation law, the buying and selling rules are inefficient or even invalid.
Second, the trading system should match their own resource capabilities and goals, if you are from a spot background, have done steel trade or other spot business, and have a lot of spot friends, then you are suitable for rebar single variety or black chain variety, to make a variety to the extreme, if you are sensitive to graphics but not sensitive to numbers, then you are suitable for the technical route rather than the fundamental route, these things need to be selected by individuals according to the specific situation.
Third, the trading system should avoid falling into the trap of "pursuing perfection", no matter how awesome the trading system is "imperfect" artwork, what we need is balance rather than focusing on its perfection, because perfection never exists.
Fourth, the trading system should strive to be simple, not too complicated, the effectiveness of the system is always the first, on this basis as simple as possible, simple to make a buying and selling decision without thinking, simple to your own buying and selling rules.
Fifth, high profitability (unpredictable profit) High profitability is based on a deep understanding of the market, which needs to be continuously improved and constantly run-in.
It is not difficult to know what is the secret of successful traders to make money, and it is not difficult to know the reasons for their investment failures, the real difficulty lies in what we must understand what the core of the trading system is, and carry out all operations around the core essence of the trading system, so that we know what we focus on, what we should do, and do the right thing. Therefore, it is very important to understand the essence of the trading system.
04 The essence of the trading system
1. The trading system is an expression of a way of thinking, and it is just a tool to observe the market
The trading system is not a technical indicator, a K-line and other judgments, but an analysis, judgment, and decision system, involving a comprehensive system of trend, position, risk, and return. Technical analysis is phased, and technology is never the most important.
2. The trading system is an expression of probability
The trading system is a kind of probability analysis and judgment, the strength of the market, the price of the price, the position and timing of buying and selling, etc., all need to be judged, but obviously technical analysis is not a complete judgment, but a probability judgment. Therefore, no matter what kind of technical analysis will be right or wrong, 100% perfect trading strategy is impossible, therefore, technical analysis can only be technical analysis, all the time reflecting the fundamental logic of probability, want to increase the probability of 10 percentage points, how difficult it is, do not understand the fundamental logic of probability, it is easy to lose yourself in the alley of technical analysis.
3. The trading system is an expression of the essence of trading
Quotes are not repeated, it is impossible to touch the same market, as the saying goes, it is impossible to find two identical leaves. However, the god of trading is unchanging, and the god of trading is the probability and consistency of the operation mode, cycle, capital management (capital preservation and profit) and how to choose between contradictions, etc., and the trading system is the expression of our understanding of the essence of trading.
The market has a trend over a period of time, and patterns are constantly repeated. In this way, the basis of our transaction will be presented in front of us in a different form, and after it appears, we will do a good job of classification, what should be done, what should not be done, what is the standard of doing, and the rest is to do a good job in asset management execution. If it is clear that any trading method is a definition of the market, and then follow the principle of simplicity (the simpler and clearer the execution), then trading becomes much simpler, and Stanley Crowe's technical operation is very simple, he only uses double moving averages to define the direction.
The real masters of trading are good at simplifying and essentializing complex things. This is true for work, and it is also true for life. The taste of the world is Qinghuan, simplicity is the least simple realm, comrades-in-arms, do you have your own trading system?