About the Minimum Regret Strategy in Closing a Position

When will a profitable order be issued? This is a question that has no standard answer but has to be considered.

I believe many people have heard the saying that the master can sell, so what does it mean to sell? Does selling at the highest point mean it must be great?

Taking spot as an example, let’s first talk about the purpose of selling.

Selling has at least two purposes, one is to lock in profits, and the other is to maximize profits.

After a small rise, if you sell too late, the price may return to the entry price, which means no profit is locked.

Exiting the market too early during a big rise means failing to maximize profits.

The magnitude of the market increase is uncertain. This is the contradiction and the fundamental reason why my friends find it difficult to sell.

There are many solutions. To put it simply, implement the regret minimization strategy. Let’s continue talking about #交易策略 in the next article.