#趋势交易策略 Trend Trading Practical Guide: The Path to Profits by Going with the Trend
1. Core Principles of the Strategy
Trend trading is based on the market principle of "the strong get stronger," capturing profits by identifying and following established price trends. This strategy is particularly suitable for:
Significantly trending market phases
Mainstream trading products (indices/forex/commodities)
Daily and higher time frames
2. Key Operational Framework
Trend Determination Criteria:
√ 50-day moving average crosses above the 200-day moving average (Golden Cross)
√ MACD histogram continues to expand
√ Price consistently makes new highs/lows
Precise Entry Strategy:
Trend retracement to key support/resistance levels
Short-term moving average (10-day) retraces to long-term moving average (50-day)
Use of RSI (40-60 range) to filter false signals
Position Management Rules:
■ Initial position ≤ 5% of total capital
■ Pyramid scaling after a 5% floating profit
■ Maximum position limit for a single product 15%
3. Intelligent Risk Control System
Dynamic Stop Loss Settings:
Fixed percentage stop loss (1-2% of account funds)
Technical level stop loss (previous low/high 1.5 times ATR)
Trailing stop loss (Chandelier Stop Loss Method)
Trend Following Take Profit:
◆ Moving average system take profit (breaks below the 10-day moving average)
◆ Exit upon trendline break
◆ Fibonacci extension levels for partial profit-taking
4. Practical Enhancement Techniques
Multi-Timeframe Verification:
Weekly direction confirmation
Daily opportunity spotting
4-hour chart for precise positioning
Volume-Price Coordination Analysis:
Moderate volume expansion during trends
Volume during breakouts ≥ 2 times the 20-day average volume
Volume shrinks to 50% of average volume during retracements
Best Trading Times:
★ Overlapping sessions of Europe and the US (14:00-17:00 EST)
★ Avoiding major data releases 1 hour before and after
★ Avoiding low liquidity periods such as holidays
5. Key Success Factors
Trading Discipline:
× No counter-trend operations
× No premature profit-taking
× No revenge trading
Psychological Qualities:
Patience to wait for trend confirmation
Acceptance of reasonable drawdowns
Maintaining emotional stability
Continuous Optimization:
◇ Daily trading log records
◇ Weekly profit-loss ratio statistics
◇ Monthly parameter adjustments