Contract Trading Strategy Does Not Hold Overnight Positions
1. Holding Time
It is required to complete opening and closing positions within the day, avoiding overnight holdings; swing trading involves holding positions from several days to several weeks to capture phase-based fluctuations; trend trading involves holding positions from several months to several years, following the overall market trend.
2. Risk Control
Avoid overnight risks such as policy changes and black swan events by closing positions within the day; grid trading relies on preset levels to respond to fluctuations, focusing on spatial control; regular stop-loss and take-profit strategies are limited by price levels without restrictions on holding time.
3. Trading and Profit Models
Non-overnight holding strategy entails frequent trading, accumulating small gains over time, suitable for fluctuating markets; swing trading has a moderate frequency, seeking larger volatility returns; trend trading has low-frequency holdings, aiming for long-term high returns.
4. Capital Management
Focus on daily capital turnover to maintain flexibility; trend trading occupies capital for a long time, requiring a high capital amount; arbitrage trading emphasizes quickly reallocating funds to capture price differentials.