There are many trading elements, but different traders have different trading logic, and the elements are also very different. The three major elements I mentioned are just the main framework of my personal trading system. I hope I don’t mislead you.
My trading method is very simple, that is, follow the trend. If it goes up, I don't go short, and if it goes down, I don't go long. It's a one-sided operation. The principle is very simple. Take the example of tossing a coin. If it is flipped twice in a row and once is heads, then I will bet on the heads that appear the most! Don't ask why, knowing too much is not necessarily a good thing!
My system is divided into three parts: direction, rhythm and kinetic energy!
Direction: This is the most important thing to distinguish when opening the market; Method: Determine the direction through structure + filter by single moving average
Rhythm: It is the law of fluctuation, that is, its ups and downs, which is mainly used to determine the position.
Momentum: It is the comparison of the strength of long and short positions, which is mainly used as entry and exit signals. When the momentum weakens, it means exiting the market, and when the momentum explodes, it means entering the market.
Why is there no position management? Because I mainly do intraday trading, so I am not very strict about position management. Depending on my financial ability, light or heavy positions are not a problem. I only take positions that I can afford to lose!
For me, trading is about these three things. Don’t complicate anything and maintaining consistency will make it an excellent system.