How to establish your own trading system?
The purpose of developing a trading system is to standardize and guide trading behavior, to view the market calmly and objectively, to avoid blind operations, and to achieve stability in profits.
There are several steps:
1. Consistency of cycles: Choose a trading cycle (intraday, swing, trend) that suits your capital, time, and personality, and maintain consistency in your trading cycle.
2. Establish trading rules to form a closed trading loop: This includes: opening standards, closing standards, stop-loss, and take-profit.
3. Controllability of risks: A key task in trading is risk control. This includes: position size, capital management, stop-loss settings, etc., ensuring that risks are within control and within your tolerance range.
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 execute your trading rules, and maintain discipline in trading.
In addition to the above steps, it also includes independent thinking, psychological management, emotional control, and other external human factors.
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