In long-term practice, I have summarized the qualities that an excellent trading system should possess:
Firstly, reasonable control of the order frequency. Many people in the circle are eager to get rich and worry about missing opportunities if they don't open orders for a day. However, orders should depend on the market, not on time. Ignoring market conditions when placing orders can lead to losses; although there are many opportunities, it is difficult to catch them all. "Waiting" is crucial; patiently waiting and striking accurately will reduce stop-loss orders, and profits will naturally increase.
Secondly, overcoming greed. Greed is a major taboo in trading, especially in contract trading. As the market fluctuates, many people fail to take profits after doubling their gains due to greed, ultimately leading to losses or even liquidation.
Thirdly, strictly implementing take-profit and stop-loss strategies. This is the core of contract trading and also the key to my high return rate. Before analyzing the market and placing orders, clearly define the take-profit and stop-loss levels, and firmly set them after weighing the risk-reward ratio. In this way, even with market fluctuations, one can respond calmly, strictly stopping losses to protect the principal, and taking profits in batches to lock in gains.
Fourthly, scientifically managing position sizes. Why is it important to control position sizes? A simple calculation shows that with a 20% profit, a 20% loss, and a 50% accuracy rate, after 40 cycles, the asset would be halved; considering transaction fees, the losses are even greater. It is essential to control position sizes effectively, keeping a fixed principal and withdrawing profits in a timely manner.
Fifthly, focusing on practice and reviewing summaries. After mastering relevant techniques, practice and review are key to building a system. Conduct a review for every order and every week, enriching the reasons for opening orders by documenting them and improving take-profit and stop-loss points. A trading system must be summarized through practice; every loss is a lesson learned, and the important thing is to absorb those lessons.
For friends who have made losses and want to recover, follow @谈币, open orders daily, and eat well every day!
