I have been reshaping my trading system recently and have summarized some experiences:

First, the risk management rules

• Set risk tolerance limits: clarify the maximum loss you can bear in each transaction and the overall transaction, such as controlling the risk of a single transaction to less than 2% of the funds to avoid major losses due to a single mistake.

• Diversify investments: do not concentrate all funds on a single trading product or market, and reduce risks by diversifying investments, such as investing in different asset categories such as stocks, bonds, and foreign exchange at the same time.

• Control leverage ratio: use leverage cautiously to avoid excessive leverage leading to uncontrolled risks, such as controlling the leverage ratio within a reasonable range, generally not exceeding 20 times.