There is a lyric that says it well: "I have crossed mountains and seas, and I have passed through mountains and seas, and I have everything that has been scattered like smoke in the blink of an eye." ”
I believe that many investors have such feelings, in futures trading, when it is good, it is not difficult to multiply the capital several times, or even dozens of times, but when it is bad, the drawdown of 50% is considered good, and the position may be blown up by accident. For most people, the probability of the latter is much higher than the former. A big reason for this is that you don't manage your position well!
Many investors enter the futures market with the good wish of "making a fortune", but because they arbitrarily add or decrease positions, not only do they not turn the futures market into their own "cash machine" as they wish, but they become "liquidation masters" and are ruthlessly harvested by the market.
There was once an experiment by position management experts who decided to go long or short by flipping a coin, and under such random decisions, no matter what the market trend is, you can still make money with good position management. This also speaks volumes about the importance of position management in trading.
Here are some of the traders we interviewed, who either emphasize light positions and think that being careful can sail a 10,000-year-old ship, or favor heavy positions, and feel that full/heavy trading has trained their acumen and courage. But without exception, they all have a position management system that suits their trading mode and will strictly implement it. More importantly, they clearly understand why and why they are making this position choice.
1
Lin Qingfeng: If you continue to trade heavy positions, you will one day return the money you earned to the market
Intraday short-term + medium and long-term swing trading, mainly trend following. Automatic trading assistance, subjective manual trading, stable profits for many years.
My trading strategy is medium and long-term strategy + intraday short-term strategy. In a market where black swan events are frequent and volatility increases, I have reduced my trading positions for medium- and long-term strategies and increased my positions for intraday short-term trading. Under normal circumstances, for medium and long-term trend trading, I generally use 1-2 positions. For short-term trading, I use 2-3 positions. In the futures market, there are many celebrities, but there are few birthday stars. There is a sentence that I find very interesting: the money earned by luck will eventually be lost back by "strength". If you continue to trade heavy positions, you will one day return the money you earned to the market.
2
Zhang Weifu: The reason why I dare to trade heavy positions is that the cycle is small, the stop loss is small, the U-turn is fast, and the combination is relatively rich
Use the pyramid platform to automate trading, multi-variety, multi-period, multi-strategy combination trading, and currently mainly use short-term programmatic trading strategies.
Sometimes my account will reach more than 50% of the position, the main reason why I dare to trade heavy positions is that the cycle is small, the stop loss is small, the U-turn is fast, the combination is relatively rich, and there is a more critical reason is that I did a historical backtest to see the maximum drawdown, capital utilization rate, profit expectation, etc. in the backtest, I think the drawdown is relatively controllable. In addition, for short-term cycles, many times it is seen that the position of the account is relatively high, but it may be scattered in various combinations, which can improve the margin utilization rate. For example, if we only do one variety and one strategy, it will never be possible to do it with 50% of the position, because the risk is too great, so if we use 40 strategies and hundreds of sub-strategies to do it, this can actually effectively avoid the maximum drawdown.
During holidays, I will subjectively control the position manually, because the market on holidays is unpredictable, but it also depends on the balance of the position, for example, we have 30% At this time, we evaluate that if the long and short are about the same, in fact, there is no need to intervene, if it is an absolute naked long or naked short, when the risk exposure is relatively large, I may intervene manually, just hope that in the extreme market we can lose a little less, but definitely not all of the positions.
3
Wang Jian: Heavy trading in the account has become a habit for me
The champion of the lightweight group of the 13th National Futures Real Trading Competition, good at full-variety, multi-cycle subjective trading.
I generally trade heavy positions in the account, which has become a habit, and it is difficult to change things after getting used to it, and there is no need to change it, because I recognize this way of trading heavy positions in the account, when it goes well, it is as heavy or full as possible, and when it is not smooth, it will slightly reduce the position.
Assuming that a total of 1 million can be invested in the futures market, at present I will choose to use 250,000 to invest in the futures market, and wait for the funds to more than 1 million to withdraw the principal of 250,000, and then use 750,000 to fight for greater profits, and then after several times the profit, and then withdraw, if the loss, I will insist on using the remaining funds to continue trading, until close to liquidation and then add the next fund. The biggest advantage of this method is that it can avoid impulsive orders, if you put 1 million in the account, no one dares to guarantee that the remaining 750,000 will not be used, which actually reduces the risk of funds.
4
Yang Juan: The premise of hard resistance to heavy positions is that the trend has not deteriorated
In 2013, she started futures trading, and in 2019, Yang Juan won the Pioneer Medal of the Year in the 11th "Blue Ocean Secret Sword" China Hedge Fund Open with an ultra-high net worth of 60.93, and refreshed the annual return history of the competition.
My position is relatively large, generally above 80%, and sometimes there are more full positions overnight, and the big drawdown may be after the increase in positions. In this case, I generally ignore it and reduce my position a little bit if the risk is too high. In fact, it is a hard carry, but the premise is that I judge that the trend is not bad, and I do not reach the stop loss level I preset, so I stick to it. The advice to investors is to strictly implement their own trading system and strictly stop losses. My own stop-loss is relatively large. In the case of profit, the profit amount is used as the stop loss point, and in the case of floating loss, the stop loss is set at 50%.
5
Leshui: My ideal state is not to add more than 5 lots per trade
Focusing on intraday trading of stock index futures, he made a profit of more than 300 yuan with a principal of 600,000 yuan in 2015, and has made a steady profit since 2018.
I am now using light short-term trading as the basic trading method, doing it with one hand and one hand, in a pulsive way. But some opportunities may increase positions, most of them belong to active positions, may be set to increase positions or may be profitable positions, my ideal state is best not to increase positions more than 5 hands per transaction, otherwise it must be a passive position, at least indicating that the previous judgment is wrong, if you increase the position may contain unexpected risks. Light short-term is also a less risky, risk controllable trading method, according to my profit target with no heavy position to bet, if the daily trading volume of 60 hands, dispersed in 20-30 trading opportunities will be more appropriate.
It is understandable that some short-term traders have heavier positions, but the current situation must not be to do stock indexes, but to do commodities, and heavy short-term positions are easy to control the long-term risks of heavy positions, but from my philosophy, I do not advocate the way of heavy positions, whether short-term or long-term.
6
Chen Jingpeng: The total position in a year is rarely more than 50%.
Professional investment for 13 years, except for the first year of 12% loss, has been profitable since 2008, with an average annual return of between 30% and 50%.
In terms of position management, I mainly use an algorithm similar to the turtle trading rule, first calculate the daily volatility of the last month, and the average volatility of each candlestick, and then use 1% or 2% of the principal to remove the volatility to calculate the position. The turtle trading rule is to set a two-day volatility as a stop loss, and I sometimes set it a little smaller, so that the bottom position is generally a position of one percent, like iron ore volatility is relatively large, and it may be a position of 0.5 percent. This approach is conservative, so the expected annualized return is not too high, 30%-50% is good. If you are in the right direction, add a position as soon as possible. Do at most two targets in the same sector, otherwise you will be wrong, and the same sector will plummet, which will be miserable. If the total position is done smoothly, it will reach 30%-40%, and it is rare to achieve more than 50% in a year.
7
Li Yingnan: Build a good position at one time, and the importance is not the price
He has made financial investments in stocks, warrants, and external markets, and has 12 years of experience in futures trading.
In terms of positions, I generally build a position at one time, focusing on the momentum rather than the price, and pursuing to quickly get out of the cost area after opening the position. If it is a strong trend, it will increase its position during the pullback, and it will also flexibly adjust the position according to the trend to make the position closer to the direction of profit, just like different tactical formations are required at different stages of the war.
8
Zhou Guanliang: The importance of the position mainly depends on the proportion of futures in household assets
A typical trend trader believes in the investment philosophy of "no more, no short, subjective is wrong, emphasis is poor, and go with the flow".
I always believe that we should not only look at the position of the trader's futures account, but also look at the allocation of futures in household assets. For example, if a trader has 1 million investment assets and only uses 100,000 yuan to make futures, then it doesn't matter if he loses out of a full position; if he takes out 1 million yuan to make futures, then 30% of the positions are quite high. Futures should be a career, not a tool for short-term profiteering, and futures should be an investment variety that can make life icing on the cake, rather than expecting it to be a blessing in the snow.
9
Wang Qing: In times of crisis, secondary positions should be abandoned
It is widely engaged in the trading of a variety of external derivatives and has its own unique trading system. Since 2014, it has made stable profits and achieved the freedom of trading wealth.
First of all, you should evaluate your positions, analyze their correlation and volatility, and ensure that your positions have a limited exposure to a single risk and a reasonable distribution of volatility, so that the account equity will not fluctuate too much when encountering extreme markets. The second is position management, as far as I am concerned, the position of subjective trading (futures and buying options) is generally not more than 30%, and the position of selling options is generally 10%-20%. The remaining funds will sometimes do some ultra-short-term/short-term with strong certainty, and they will be fast in and out regardless of profit or loss. Finally, it is necessary to clarify one's core and secondary positions, and in times of crisis, one should decisively abandon secondary positions and stick to core positions.
10
Zhuo Ric: Don't always think about profit when placing an order, but consider risk first
In 1995, he began to do stocks, and in 2006, he began to trade futures, subjective trading, mainly short-term trading, and has his own trading system.
When I find a variety that can be traded in the short term, I try a small amount of positions first, and don't always think about profit when placing an order, but consider the risk first. After the test position, I found that the price fluctuations of this variety are in line with my trading system, and coincide with my market feeling, that is, increase the position to 50%, and stay vigilant, when the price falls back in the opposite direction or rises to the fluctuation limit of five prices, immediately reduce the position until the position is cleared to avoid greater losses.
11
Du Hesen: Trading to make a lot of money depends on constantly copying the heavy position market main rising waves
Nearly 30 years old stock idiot, good at stock futures trend research and trading, firmly believe that as long as the judgment of two or three waves of the market and use a systematic and stable trading model can achieve more than ten times the profit.
I understand heavy position as choosing the right symbol at the right time to trade with the right position. The word heavy position is a dynamic change in position control, not that I like heavy positions, but when I consider various factors, the position control of a certain variety. I usually take heavy positions at key points and predict the stop loss, and I rarely increase my position during the session. Because I very much agree that the first thing to make a lot of money in trading is to take a heavy position, the second is to be able to hold it in your target period, and thirdly, once you reach your goal, you must clear all positions and stay away from this symbol. If there is an opportunity that I can grasp, of course I will still pursue huge profits. If I'm not back to the best of shape, my position will be a little lighter. It's an inward-looking process, depending on your state of play and the environment you're in.