Understand in one article! The eight most well-known trading systems in the trading circle, recognize the methods of the main force's operation!
1. Turtle Trading System
◦ Founder: Richard Dennis & William Eckhardt
◦ Core Concept: Trend Following + Breakout Trading + ATR Dynamic Stop Loss
◦ Applicable to: US Stocks, Futures, Forex, Commodities, Cryptocurrency Markets
◦ Advantages: Rules mechanized, strict risk control, suitable for major trend markets
2. CAN SLIM System
◦ Founder: William O'Neil
◦ Core Concept: Fundamentals (Earnings Growth) + Technicals (Stock Price Breakout) Resonance
◦ Applicable to: Stocks (High-Growth Stocks)
◦ Advantages: Balances company quality and market momentum, captures strong stock main rising waves
3. Darvas Box Theory
◦ Founder: Nicolas Darvas
◦ Core Concept: Box oscillation breakout as buy/sell signal
◦ Applicable to: Stocks, Cryptocurrency
◦ Advantages: Simple and intuitive, accurately captures trend initiation points
4. Elliott Wave Theory
◦ Founder: Ralph Nelson Elliott
◦ Core Concept: Market operates in a 5-wave upward + 3-wave correction cycle
◦ Applicable to: Forex, Stock Indices, Futures, Major Cryptocurrencies
◦ Advantages: Predicts price targets and turning points (combined with Fibonacci sequence)
5. Quantitative Trading System
◦ Origin: Hedge Funds/Investment Banks (No single founder)
◦ Core Concept: Mathematical Modeling + Algorithmic Automatic Trading
◦ Applicable to: Stocks, Futures, Forex, Major Cryptocurrencies
◦ Advantages: Eliminates human interference, efficiently executes high-frequency strategies
6. Grid Trading System
◦ Core Concept: Averaging into positions against the trend, buying low and selling high within a range
◦ Applicable to: Forex, Cryptocurrency
◦ Advantages: Stable profits in ranging markets, requires strict risk control to prevent unilateral risks
7. Bollinger Bands Trading System
◦ Founder: John Bollinger
◦ Core Concept: Price touching the channel boundaries indicates a reversal
◦ Applicable to: Stocks, Forex, Futures, Major Cryptocurrencies
◦ Advantages: Identifies overbought and oversold conditions, suitable for short-term trading
8. Gann Theory
◦ Founder: William Delbert Gann
◦ Core Concept: Time Cycles × Price Geometry × Angle Lines
◦ Applicable to: Futures, Gold, Stocks, Major Cryptocurrencies
◦ Advantages: Multi-dimensional space-time analysis, high precision predictions
Starting tomorrow, I will explain each one in detail. Please stay tuned, everyone!