Taking my many years of trading experience as an example, I will not elaborate on some false and empty statements to fool you.
No matter what kind of trading system you use, the menstrual cycle does exist.
Taking the current market as an example, there are three possibilities for the medium-term trend of Bitcoin: a drop, a sharp drop, and a sharp rise. However, if you choose a direction and respond according to the stop loss, even with a 30% base position, the retracement will be unbearable.
For example, when the market rises to 28XXX, if you view it as a big short, then your stop loss needs to be placed at 32,000 USD. Only when it breaks through here completely can you deny that the short trend does not exist.
In the subsequent operation process, breaking through the new high means the confirmation of a big upward trend, and the big rise may end at a certain position at any time.
So if you don't have the bottom chips in this situation, chasing the position is obviously not a good choice.
You will find that if you use short-term stop loss as an example, like my recent operation, you will repeatedly stop loss. In addition, Bitcoin fluctuates back and forth in a volatile trend. Many trends cannot be defined by technical analysis, which is also the limitation of technical analysis.
Some students may ask here: Since technical analysis is not easy to use, is it feasible for me to use grid to make orders?
There are several issues to be addressed here. The first is where to place the stop loss above and below the grid? The second is how to deal with false breakthroughs or false breakouts? The third is how do you determine whether the market trend is oscillating rather than unilateral?
If the above issues are handled well, I believe the grid can be profitable in a volatile trend.
In the trading system, making money will become extremely difficult. I currently have no good ideas on how to deal with it.
The first idea is to give up the current market trend and wait for opportunities with high certainty.
The second idea is to follow my previous playing style, with a small stop loss, repeatedly touching the top, or buying the bottom. The trend of Bitcoin in recent times, the main force basically does not give you a chance to do the right side, and it is quite difficult to do the right side.
Summary: When you encounter your period in a trading system, the more formal approach is to give up the operation and wait for the trend to come.