Grid trading common sense (2)
5. What are the advantages of the grid compared to contracts?
① Stable compound interest, 1.01 to the 365th power is an annualized return of 3778%, and 1.02 to the 365th power is 133740%. Position adjustment is only required when the lower limit of the range is exceeded, and only in this case is a loss possible (the matching profit is not enough to turn around the loss in the time before falling to the lower limit of the range). The probability of such a loss event occurring is less than 5%, and stable compound interest can be achieved in other situations.
② The contract needs to be monitored, and the robot only needs to set the trigger, take profit, and stop loss, so that it can quietly act as a cash machine and relax your life.
③Contracts require "humans" to operate. As long as human factors are involved, there is no guarantee of rationality and strict execution at all times. The transaction itself is an anti-human behavior. Profit and loss will make you excessive, while robots are absolutely strict in executing every transaction. operate.
6. How to operate if you are afraid of black swan?
①Never satisfied with the warehouse
② Save chips for a comeback: Every time you make money, set aside 30% of the profit and transfer it to the spot. This money is something you don’t want to squander under any circumstances.
③Two truths: There are always better bargaining chips, and there is a chance to turn around if the capital is there.
④ It is never recommended that you open a short position, but occasionally some good targets will be introduced for risk enthusiasts. When opening a short position, you must bring my stop loss.
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