How to manage positions and ensure winning rate
The first thing to ensure is whether the winning rate of your trading strategy is above 50%.
If you look back at your historical trading process, no matter how much the amount is, you will make money basically 10 times, for example, more than 6 times.
First, then you need to determine your bet amount each time, such as 50,000 U or 500,000 U for each trading opportunity found by the same strategy. In this way, the winning rate of the strategy will directly determine your profit, rather than random betting, so that you will not make 20% when you bet 10,000 US dollars 9 times, and lose 20% when you bet 100,000 US dollars once, and finally lose money in the overall calculation.
Second, for the trading opportunities generated by the same strategy, the stop loss ratio executed in the transaction must also be strictly unified, such as uniformly cutting meat stop loss when the loss is 15%. Different strategies can set different meat stop loss positions and different profit stop profit positions.
Third, a very critical point is that the strategy's take profit point ratio should be higher than the stop loss point ratio, such as 20% profit stop loss and 5% loss stop loss. This will increase the probability of making big money and losing small money.
The fourth and last point is that if the profit has been generated but has not reached the target price of the profit stop point, at least or as far as possible, you should ensure that you stop profit above the cost line to further reduce the probability of loss.