The Eight Most Famous Trading Systems
1. Turtle Trading System
◦ Founders: Richard Dennis & William Eckhardt
◦ Core Idea: Trend Following + Breakout Trading + ATR Dynamic Stop Loss
◦ Applicable to: Futures, Forex, Commodities
◦ Advantages: Rule mechanization, strict risk control, suitable for major trend markets
2. CAN SLIM System
◦ Founder: William O'Neil
◦ Core Idea: Fundamental (Earnings Growth) + Technical (Price Breakout) Resonance
◦ Applicable to: Stocks (High Growth Stocks)
◦ Advantages: Balances company quality and market momentum, captures strong stocks' main uptrends
3. Darvas Box Theory
◦ Founder: Nicolas Darvas
◦ Core Idea: Box oscillation breakout as a buy/sell signal
◦ Applicable to: Stocks, Cryptocurrencies
◦ Advantages: Simple and intuitive, accurately captures trend starting points
4. Elliott Wave Theory
◦ Founder: Ralph Nelson Elliott
◦ Core Idea: Market operates in 5-wave uptrends + 3-wave pullback cycles
◦ Applicable to: Forex, Stock Indices, Futures
◦ Advantages: Predicts price targets and reversal timing (combined with Fibonacci sequence)
5. Quantitative Trading System
◦ Origin: Hedge Funds/Investment Banks (no single founder)
◦ Core Idea: Mathematical Modeling + Algorithmic Automated Trading
◦ Applicable to: Stocks, Futures, Forex
◦ Advantages: Eliminates human interference, efficiently executes high-frequency strategies
6. Grid Trading System
◦ Core Idea: Accumulate positions against the trend in batches, buy low and sell high within a range
◦ Applicable to: Forex, Cryptocurrencies
◦ Advantages: Stable profits in a ranging market, requires strict risk control to prevent one-sided risks
7. Bollinger Bands Trading System
◦ Founder: John Bollinger
◦ Core Idea: Price touching the channel boundaries indicates a reversal
◦ Applicable to: Stocks, Forex, Futures
◦ Advantages: Identifies overbought and oversold conditions, suitable for short-term trading
8. Gann Theory
◦ Founder: William Delbert Gann
◦ Core Idea: Time Cycles × Price Geometry × Angle Lines
◦ Applicable to: Futures, Gold, Stocks
◦ Advantages: Multi-dimensional temporal and spatial analysis, high precision forecasting
1. Trend VS Range
◦ Trending Market: Prioritize Turtle, Wave Theory, Box Breakout
◦ Ranging Market: Bollinger Band Reversals, Grid Trading is more effective
2. Combining Technical and Fundamental Analysis
◦ Purely Technical: Wave Theory, Bollinger Bands, Gann
◦ Mixed Strategy: CAN SLIM (Fundamental Stock Selection + Technical Timing)