Foreign exchange practice strategy is a lot of investors I want a relatively reasonable capital injection tips.
Ok, first, how to customize foreign exchange practice countermeasures?
1, the use of orientation: the first consideration of the short, medium and long-term trend of the market, to consider the use of which should belong to the four, so as to carry out a reasonable layout of use.
The use of the long-term direction of the first weight “potential”, along the direction of the market, do not subjectivity of the top and bottom of the default.
The use of the center line is heavy “quantity”, which is also the performance of the price assistance in the market, in the early and middle band market, the relationship between the quantity and price leaked out the equivalent of the main signal, to assist the technical market forecast, used as a reference.
In the use of short term stock field, the top priority comes from the “break”, such as the long-term promotion, pure break from the technical aspects of multiple angles to find the best entry point, to stock short term technical index analysis used as the basis for entering the field.
2, assets zoning: After considering the use of the orientation, we must do a good job of the overall assets zoning.
The first consideration is how many positions you want to use. Usually, capital investment assets are used as reference. For a long time, assets with a higher position account for the proportion of capital investment, and in the short term, the position should not exceed one-fifth of the total capital investment assets.
In the field of asset control, the most avoid all bets are off. If the market is wrong one day, all the assets will be lost, and there will be no assets to use again.
However, in the automatic formulation of countermeasures, it is necessary to give priority to the calculation of the win-loss ratio after use, usually 3:1 is the speculative principle. If the win-loss ratio of 3:1 is maintained at every entry, 40% of the profits of each market transaction will be used as the amount of market transaction when making a lot of money, the amount of the next few market transactions will be deducted from the loss amount and the drug operation will be reduced.
Even if it is only 1/2 of the winning point, the probability of entering the market trading five times is 0.1875. In a long time, the probability of losing is basically close to zero.
Therefore, good asset classification basically takes into account the merits and demyits of the use of countermeasures, which should never be underestimated.
3. Plan for attack and defense.
The formulation of countermeasures first recontrol the ball, with a firm control of the ball plan can only carry on the internal attack, just like two armies.
If there is no brave backbone or flexible exit, the chances of success will be low.
Instead, it is easy to stick to the all-or-nothing bet.
At the beginning of the market trading, often encounter the market around the erosion of profit and loss for a while.
If the moral bottom line of ball control is not reached, do not rush into the ball, must be careful and strict self-discipline, avoid the fluctuation of the mentality of the use of success or failure.
When the trading strategy is drawn up, it is also necessary to prepare operational countermeasures, when to add positions?
How much is the extra warehouse?
Combat plan to improve the profit, relatively may also cause a greater loss, must not be at a loss when the position of warehouse.
If you look at it from a different perspective, when we get the first batch and we can’t sell it, and the price is going down, are you going to buy it again?
The awareness of warehouse is also so, when the market use a loss state, like to take inventory backlog, can only think of ways to deal with the loss, how to have the power to add warehouse again.
Therefore, the continuous improvement of the attack and defense plan before entering the market trading that is to know the maximum loss of a single market transaction, in the scope of the work ability to bear, to cope with short-term ups and downs in the market can be calm.
4. Quick setting of stop loss points.
For the use of other links, the quick setting of stop-loss points also has other options.
In the use of the long-term field, the choice of stop loss can be a higher proportion, accounting for a relatively high proportion of assets, to prevent a period of reverse market conditions and be swept onto the field.
The choice of stop-loss for the center line usually tends to be technical, based on the development trend line of the current market or the height of the front wave.
Selections in stop-loss tend to be smaller layouts, often early in the day highs or lows or opening closes used as reference.
However, it is still necessary to consider the quick setting of the duration of stop-loss. Before drawing up the use of countermeasures, it is necessary to assume that the market of this band can continue for a long time. When the market appears that the market should be started but not started, it must comply with the duration of stop-loss.
However, investors can find out from the historical time market view, the past market to explore the occurrence of such false rise several times, data analysis of the occurrence of days, as the use of countermeasures for the future stop loss point quick setting reference.
How to establish an effective foreign exchange trading strategy?
As a trader, do you oscillate between different trading strategies?
Yes, in today’s financial markets, the choice of strategies is almost limitless.
Sometimes you don’t want to miss any of the right approaches and elements, but choosing the right strategy isn’t easy.
Today, we will look at the five key elements of choosing a strategy and introduce a simple trading strategy.
1. R: The Risk (Reward) ratio of R ratio strategy is the first factor to pay attention to.
In general, trend-based strategies have better RR ratios than inversion strategies.
But this does not mean that the inversion strategy is worse, for example, it may have an advantage in terms of the profit/loss ratio, as described in the next section.
2. Break-even ratio The break-even ratio is often considered the “quality parameter” of a strategy.
Of course, there is no holy grail of 100 percent success.
A strategy with a profit/loss ratio of around 60% is enough to support your trading success.
Moreover, if the R:R ratio is high enough, a profit/loss ratio of 50% or even less than 40% is acceptable.
3. Frequency of signal generation Note the frequency of the transaction.
Why?
We are human beings, not machines, and HFT is not in principle for the average trader.
Some strategies are getting more signals, perhaps because they are not doing a good enough job of “filtering” bad signals.
The frequency of transactions is not important, we must put quality over quantity.
4. Simple or complex?
Strategies that appear to be extremely complex on the surface, with dozens of hiccups and dozens of different rules, are not as effective as expected when applied to real trading markets.
Of course, complexity is not a bad thing.
But choose a strategy that isn’t too “fussy” so you can easily understand and analyze it.
5. The most important thing is that the strategy should be personalized.
You may find that a trader shares strategies that seem good but don’t work when you apply them yourself.
This mistake belongs to no one, but the strategy is adapted differently for each trader.
For example, if a trader likes to analyze long-term trends and fundamentals, it will be difficult for you to do technical analysis.
So, don’t choose a strategy that makes you feel uncomfortable and stressed.
Based on the fourth requirement above, today, we will introduce a “very simple” trading strategy.
This strategy may be more suitable for beginners, so you can learn it as you please.
The indicator used in this strategy is EMA 5EMA 10KDJ (10,3, 3) RSI (9) Please note that the strategy applies to a four-hour cycle trading rule with multiple orders: the first signal required is EMA5 to wear EMA 10.
The second signal is KDJ producing a gold fork.
Finally, the KDJ indicator is below 80 and the RSI is above 50.
If the above conditions are met, multiple orders can be considered.
The opening principle of a short order is the opposite of a multiple order.
Exit rules can place stops at the highs and lows of recent ranges.
As shown in the chart below, we will place a stop at the recent reversal high.
This is actually a stop loss based on an R: R ratio. Maybe 1:1 to 1:2 is a good ratio. Note that the risk-benefit ratio is something we should always pay attention to.
As mentioned earlier, this strategy is based on a four-hour cycle. For novice traders, choosing a larger cycle allows more time and space to make their own judgments, but in any case, only after the various strategies are actually used can personalized adjustments be made.
