The more complex the trading system, the greater the probability of death. In the field of trading, the truth is simple. The more you know, the more you lose!
A mature trading system can be very simple. A total of eleven words.
Big cycle, key points, sit on the mountain and watch the tigers fight.
1. Big cycle: judge the main trend through the weekly line, whether it is rising, falling or oscillating. Don't look at anything that is oscillating.
2. Key points: Breaking through the high and low points of the range is the key point, and start to build positions in batches. The principle is that you never cover your positions when you lose money.
3. Sit on the mountain and watch the tigers fight: After building a position, once the trend is as expected, use the pyramid to increase your position. Hold your position as steady as a mountain, let it be turbulent, and get the profit of the big cycle.
A simple trading system is difficult to execute like this, because greed is too heavy and fear is too much. So the more complex the system, the greater the probability of death.