How to establish your own trading system?
The purpose of formulating a trading system is to standardize and guide trading behavior, view the market calmly and objectively, avoid blind operations, and achieve stability in profitability.
There are several steps:
1. Period Consistency: Choose a trading period (intraday, swing, trend) that suits your capital, time, and personality, and maintain consistency in the trading period.
2. Establish Trading Rules to Form a Trading Loop: This includes: opening position criteria, closing position criteria, stop-loss and take-profit.
3. Risk Control: A key task of trading is risk control. This includes: position size, capital management, stop-loss settings, etc., to ensure that risks are within controllable and bearable limits.
4. Testing and Optimization: Use historical data and actual trading results to test and evaluate the effectiveness of the trading system, making necessary adjustments and optimizations.
5. Discipline and Execution: Follow the trading system, strictly adhere to your trading rules, and maintain trading discipline.
In addition to the above steps, it also includes independent thinking, psychological management, emotional control, and other human factors outside the system.
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