Since the liquidation on January 3, Lao Yang has disappeared for a week and a half. During this period, I carefully reviewed the problems that occurred in the previous trading system and readjusted the quantitative strategy.
I was optimistic about the swing strategy before, and only went long but not short. In principle, there was no problem. However, a big mistake I made was "going long against the trend."
I learned a long time ago that trading should go with the trend, that there will be multiple small cycles within a large cycle, and so on.
Where are the previous strategic issues:
1. I am optimistic that the big cycle will rise, so I go long in the swing band. But I ignored the small period of decline, and what I was doing was a contract. Once the market was smashed and the pin was inserted, I would lose completely. The price of the previously optimistic currency has also begun to rise)
2. I love to carry orders too much, and the small cycle will fall, but I also think that the big cycle will rise, and I am unwilling to cut the meat, which leads to the final liquidation of the position.
3. Too many targets were opened. Although the contract value of each target is small, the overall volume is large.
In the subsequent trading system, I will temporarily eliminate the swing strategy and focus on short-term and medium-term trading without taking orders. You will probably follow the following options:
1. Respect the short-term trend and stop losses in time
2. Because this time it returns to the medium and short term, if the trading signal is suitable, we will consider opening a short order.
3. Do a good job in cost control, avoid opening too many bids, and only focus on the leading ones.
4. In special circumstances, manual intervention will be performed. For example, in the third point, the leader will be manually selected (it needs to be done in combination with the news), and the strategy will be fine-tuned in real time.
That’s it for now. If I have more thoughts about the trading system, I will add more later.
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