#我的策略演变 The evolution of trading strategies has generally gone through three stages, each transition directly related to the pitfalls encountered and losses suffered. Looking back, it’s all about the upgrade in mindset and understanding:

First Stage: Obsessed with the "Holy Grail", chasing signals

When I first started, I always thought that "good strategy = high win rate". I was crazy about various indicator combinations (like MACD + RSI golden cross and dead cross, Bollinger Bands breakout), staring at the market every day looking for signals, trading frequently. When I made money, I thought the strategy was great, and when I lost, I changed indicators. The result was a pile of transaction fees, account fluctuations, and always feeling anxious about "missing signals".

Key Transition: Realizing that "win rate ≠ profit"; what truly determines profit and loss is the "profit-loss ratio". For example, in 10 trades, if I made money 4 times and lost 6 times, but made 3 units each time I profited and lost 1 unit each time I lost, I could still be profitable long-term. This shifted my focus from "finding sure win signals" to "accepting losses and amplifying profits".

Second Stage: Focus on "rules", cut off emotions

After understanding the importance of the profit-loss ratio, I began to set strict trading rules: for example, only trading two familiar assets, entering trades only when both "trend + volume" conditions were met, setting stop losses outside the recent high and low points, and taking profits in two batches (one part for breakeven, one part to follow the trend). However, I often couldn't resist "manual intervention"—for example, when the stop loss was approaching, I would add to my position, thinking, "This time it will definitely bounce back," resulting in small losses turning into huge losses.

Key Transition: Treating "rules" as a "lifeline" and using mechanical execution to combat human weaknesses. Later, I even practiced on a simulated account for a month, "only placing orders according to rules, not looking at account profit and loss", gradually discovering that when you don't get hung up on individual wins or losses and focus on "doing the right thing", the long-term results are actually more stable. My mindset shifted from "afraid of losing" to "afraid of breaking the rules".

Third Stage: Adapting to "changes", leaving room for error

The market always has black swans (like sudden policies or liquidity crashes), and even the most perfect rules can fail. Once, following a trend strategy, I went long only to encounter extreme market conditions with a gap down at the open, which directly breached my stop loss line, resulting in a loss of the profits from the previous three trades. This made me realize that "strategies are not rigid; we must leave room for error in the market".