A trading system that does not look at K-line or indicators, let's take a look together---
Consolidation Market (frequent small profits and losses)
- Trade 2 times a day, 60% probability of stop loss (loss of 300 CNY per trade), 40% probability of take profit (profit of 500 CNY per trade)
- Daily net profit: `(40%×500×2) - (60%×300×2) = 400 CNY`
- Monthly profit (20 days): approximately 8,000 CNY (+8%)
Trend Market (few large profits + losses from counter trades)
- Assume catching a big trend once in a month (profit of 20% of capital = 20,000 CNY)
- Loss from counter trades 3 times (total loss of 900 CNY)
- Monthly net profit: approximately 19,000 CNY (+19%)
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1. Only add to profitable positions: never add to positions when losing, to avoid the “adding to losses” trap[[1][3]
2. Pyramid averaging: reduce the amount added each time (e.g., 2%→1%→0.5%), to prevent costs from rising too quickly[[1][7]
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Summary in one sentence
“Cut losses at 3%, add at 5% profit, reduce counter trades by half, stop trading if win/loss reaches 5% in a day”
