August has ended perfectly, and the golden September and silver October season is coming. The previous joys and sorrows are over. Starting from September, there will be new market fluctuations. It is expected that the market will fluctuate above 20,000 points. The market will gradually change. Next, we will combine short-term, medium- and long-term bands to make layouts. The following is the turnover plan:
Full leverage with 100 times compound interest, strict execution in actual combat to challenge the highest profit and loss ratio in the entire network
Strong advancement: Short-term trading is carried out in a short-term cycle, but the time, goals and pressure resistance must be arranged reasonably. Short-term profit emphasizes the comprehensive winning rate to improve the position. Short-term trading has the effect of changing the market. The rhythm must be adjusted in time according to the market conditions and the position must be controlled. The starting position of the operation ranges from 5000-8000u. You can participate in the opening of 10-15% of the position. The comprehensive profit expectation is as high as 30%
Steady band: Band entry is a short-term perfect control, mentality, position, space preparation, the space is generally more than 3 times the short-term, the emphasis is on a small cycle of wide range of shocks, suitable for nodes after a big drop or a big rise in the repair situation, the operation of the starting position range of 15000-30000u, opening position 6-10%. The comprehensive profit expectation is as high as 50%
Medium-sized trend: The medium- and long-term trend is based on the previous two steps. It is based on the trend and operates with the trend before the peak. Generally, the space is 2-3 times of the band. The starting position of the operation ranges from 50,000 to 80,000u, and the opening position is 3-5%. The comprehensive profit expectation is as high as 80%.
Trading market, what are the foundations and principles for establishing a stable and profitable trading system? !
Expected return = win rate * profit and loss ratio - (1-win rate). A positive expectation trading system means that the expected return is greater than 0.
Expected returns are determined by the win rate and profit-loss ratio. If your win rate is high but your profit-loss ratio is low, you will still lose money in the end.
For example, if the winning rate is 90%, the profit and loss ratio is 1:10, and the expected return = 0.9*0.1-(1-0.9)=-0.01, even if your winning rate is very high, you will still lose money in the end. This is why high-winning rate trading systems such as Martin Grid cannot make profits.
If your winning rate is low but your profit-loss ratio is large, you will still make money in the end.
For example, if the winning rate is 30%, the profit and loss ratio is 3:1, and the expected return = 0.3*3-(1-0.3)=0.2, it can be considered as a positive expectation, which is a typical trend tracking trading system.
In the trading market, there is only one way to achieve stable profits, and that is to lose less when you lose and earn more when you make money.
The specific approach is to cut losses and let profits run. To let profits run, you can only embrace trends. Trends are not common, but they will always appear because the market always fluctuates. If the market loses its volatility, it will lose its meaning of existence.
The purpose of a trading system is to ensure that your trading logic can be output stably. Whether you can make stable profits depends on your trading logic.
A trading system with positive expectancy must achieve profits in trends large and small, and strictly control its risks when it loses money.
Therefore, if your trading system wants to have positive expectation, you must:
1. Identify trends and have the ability to track trends, including entering the market, holding positions, and exiting the market.
2. Fund management. It can make your trading system safe and stable for long-term output. Some people have no problem with their trading logic, but they do not manage their funds well, and their positions are blown up before the profit period comes.
3. Consistent execution. Only consistent execution, through the law of large numbers, can your trading system exert its probabilistic advantage.
Laymen often think of trading as gambling, but gambling has negative expectations.
Gambling is purely about probability, and because the casino has a slight probability advantage, it uses this slight probability advantage to attract many people to play. Through the law of large numbers, it allows its slight probability advantage to continue to play out, so the casino is the one who ultimately wins the money. The casino is not afraid of you winning money, but is afraid that no one will come to play. However, gamblers do not have a probability advantage.
But trading is different. Traders can build a set of probabilistic advantages that exceed most people. This advantage comes from trends, from your holding positions in the trend and following profits, and from the establishment of a trading system that goes against human nature.
In this way, you have the probability right like a casino, and you have a slight advantage in making money than others. This is very critical. Without this, no one can make money, and then no one will participate in trading. The trading market has existed for hundreds of years and continues to grow and develop.
The essence of trading is actually the transfer of wealth. In the long run, it transfers the wealth of novices to veterans, and transfers the wealth of novices to experts. This is true in any industry. Experienced people make money from those who lack experience.
In the trading field, there is always a small group of people who can make stable profits in the long term. This group of people has truly grasped the essence of trading. Of course, they have also taken many detours and experienced many hardships in the process before they finally saw the truth of trading. Then they overcome the weaknesses of human nature and continue to earn their profits in the trading market, treating the trading market as their ATM. Lao Sun is one of them now.
