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How to do systematic trading in forex investment

2023/2/25 12:08:02  Classification:   Participation: 9  

     Because of the difference best forex rebate rebateinforextrading purpose, trading mentality, trading process, trading rules rebatemeaninginforex so on, creating a completely different change in the profit and loss of different investors funds, I divide most investors into two types of foreign exchange investment methods: subjective random trading and objective systematic trading, and we advocate that people make the transition from subjective random trading to Objective systematic trading transition Why do transactions in foreign exchange investment with an objective systematic way to carry out? We look at the trading d rebatesinforexadvantages listed in the chart below, self-check in your actual trading there is no one or more of these elements, these disadvantages mainly reflect the human nature of greed, fear, gambling and other aspects, such as overnight gambling, performance in each transaction regardless of the size of the position, all heavy or even full position operation; and for example, several analysts reminded us not to guess the top and bottom, but found that this situation If you then make a capital graph of your long-term trading capital balance changes, see whether the capital graph has appeared up and down, if these circumstances do exist, then you are likely to be in the subjective random trading way, from long-term stable profits have a way to go We are now advocating that we gradually transition to the objective systematic trading way, through the objective and The objective and systematic trading model can gradually avoid the disadvantages mentioned earlier. Lets take a look at what our philosophy is and how to operate as objective systematic trading. When the opportunity, the goal is to grasp only those who can grasp, can understand the opportunity, these opportunities should be very conducive to our control of risk opportunities before we can put into further action In addition, each of our operations should be seen as a brand new transaction Why so, take the euro, for example, has now rebounded to the bottom of cashback forex.25, I was asked when receiving advice from many investors: the early euro In the 1.23 near, has been the high level of the hedge of the euro cut, now the euro rose to close to 1.25 how to do? Can not buy back? Is it necessary to immediately chase back or wait to return to 1.23 below and then buy back? And so on a series of questions Well, I hope that when you do transactions, to forget the price of each previous transaction, only remember why the previous transaction to make money, why lose money, to summarize the experience; now you have to do is a brand new transaction, if you find that the current market to continue to rise, then why not buy it? The previous one 1.23 out, think 1.24 buy back not cost-effective, these psychological should be we try to avoid We need to do is in accordance with the systematic objective trading way to treat each operation, in the development of a perfect trading plan, need to do is in accordance with your trading plan to strictly implement can, long-term under their own capital curve shows a steady upward situation Next to What I want to share with you is: How does a systematic trading process work? Look at the following chart, I have divided it into four steps, that is, systematic trading four steps: The first step is to determine the direction of the transaction before making a transaction, to the euro for example, first we must determine our transaction is to do more euros or short euros, to determine the direction of the transaction second step, the direction of the decision after the choice of the ideal trading opportunities, such as the medium-term rise, the short term in the downward, we should choose to follow the medium-term do more Is the choice of the short term short it, that opportunity is more conducive to profit? This in the second step need to solve the third step, the pursuit of an optimal entry time, choose the best entry time is to reduce the operational risk, so as to help achieve the purpose of operation profit, or conducive to achieve long-term steady profit for the fourth step, is the first three steps on the basis of the completion of a preliminary trading plan, through the fourth step of the trading plan to improve the next will be the four steps in the The first step is to determine the direction of market trading. This is a very basic question, is also the easiest to grasp the problem, but also a lot of investors go wrong with the basic principle is: the market bestforexrebate in which direction to extend, you should follow which direction to trade, it is recommended that you determine the market trend in accordance with the order marked in the picture, we analyze the transition from long-term trends to short-term trends, analyze what trend the market is in. First look at the market trend of currency trends in the long-term trend, how the medium-term trend pattern, short-term trends to what direction When guiding our trading direction, according to the market trend is your trading direction principle is easy to come to such a conclusion, long-term trends to guide you long-term trading direction, medium-term trends to guide the direction of medium-term trading, short-term trends to guide you short term trading direction In practice, these three When there is a contradiction, grasp a principle: short-term trends obey the longer-term trend Second step, choose the ideal trading opportunity After the trading direction is determined to choose the ideal trading opportunity, grasp the core idea of trading opportunities is: there are watermelons do not pursue sesame If the current market trend is bullish in the medium term, while the short-term trend is bearish, this time should grasp the What trading opportunities? Of course, you should grasp the watermelon is the medium-term trend, your trading direction is also in accordance with the way to trade up; short-term trend bearish, you are required to seek better opportunities to do more in the short-term trend downward retracement process, give up those short-term trend in some short opportunities We grasp the ideal trading opportunities, not to grasp the largest profit space opportunities, we have to grasp the opportunity is relatively speaking the least risk If a period of the market just because of bullish, and can not find the right entry point to control the risk within a limited range, once you make a mistake in judgment, this time may lose more, we seek is to control the risk in the most tolerable range of such opportunities Step 3, seek the best time to buy and sell Seek the best time to buy and sell when there is a premise: only do There is a basis for buying and selling in the search for the time to buy we do not guess the low point, which many analysts have spoken many times before, buy the time should wait for the low point out later, and then to determine whether it is the low point, after confirming the risk is also very small; sell do not guess the high point, do not subjectively to judge the market up to the head, and in the exchange rate is rising when you choose to sell, the best time to sell is after the high point, after confirmation. After the confirmation of the fourth step, the development of a sound trading plan conventional trading plan has three basic elements, the entry price, stop loss price, the target price, the three prices to determine the formation of a preliminary plan After the formation of the preliminary plan should be assessed profit and loss ratio, to see the potential profit space and loss space is greater than 2:1, the recommended actual operation should reach 3:1, or even a higher ratio in order to Next to consider the control of the position, according to the transaction you are trading with the trend is counter-trend trading; whether there are more indicators to support the pattern, observe whether the indicators or patterns show signs of unfavorable; whether with the nature of the game and so on to decide how much an operation should control the position when the overall situation is more favorable factors, the larger the position can be, and the more unfavorable factors, the lighter the position should be. The lighter the position should be, until the abandonment of the transaction The last 1 small point is a lot of investors are prone to forget the point, after the trading plan to have an unexpected change in the plan after entry, the rhythm of the exchange rate is likely to run inconsistent with the expected, inconsistent when the market shows how a state, for these potential changes need to have a potential expectation, once the market appears unexpected changes can Timely to keep up with the rhythm of the market, and the necessary corrections to the trading plan Previous 1 2 3 Next The following combined with the market examples to learn the four steps of systematic trading just mentioned to the recent EUR/USD trend as an example, we see how to do a systematic trade Now look at the daily chart of the euro from December 04 30 to the current trend, first determine the trend of the market to determine the direction of trade From December 30 last year, 1.3666 euro historical high to, we judge from this high to now the euro in what kind of trend? It should be said that is running in the long term downtrend, so far still have not broken the graph of the large downward channel, although the recent month has a more obvious upward, but not to the beginning of this year to break the downward channel, before the formation of a breakthrough to the rise, can not conclude that the euro into the upward trend, so we believe that the euro in January this year to now is a long term downward trend (the following chart in the (blue down channel) in the medium term, from the chart can see 1.3481 high point down to the down channel has been in the previous period was clearly to rise over (red down channel in the above chart), that is, the formation of the upward breakthrough, the euro since July 5 this year to gradually step into the medium-term rise (red box in the above chart), we now see whether there is no sign of the end? From the current trend, from the beginning of July to see this round of rising so far without any obvious signs of the end, we look through other analysis methods, such as the golden mean into such a high point in March this year 1.3481 down retracement, just can see now reached a 38.2% rebound range, this time only as a reference, this time shows that 1.35 below a very This resistance has not formed a breakout so far, but also does not show clear signs of falling, so at this point we think the medium-term direction is still up, until the market has a clear top signal. Looking at the short-term trend, after last Wednesday, there was a small upward channel (blue upward channel in the chart above), this upward channel formed a breakout after 8:30 last night. This indicates that the short term upward trend is affected by a certain, short term may turn into a downward trend in our analysis of the trend just now has been derived from the daily chart of the middle line for the rise, which determines the medium-term trading direction is to remain up until the euro has a clear top signal, the short-term direction of local down, which requires that we should be in the adjustment process early next week, in line with the direction of the middle line to seek opportunities to buy more euros We The four-step process, the first step on the market trading direction judgment solved The second step of the ideal trading opportunity we grasp is the medium-term up opportunities, in the short term there is a pullback grasp watermelon do not pursue sesame seeds, this time temporarily do not consider the short term short time, but consider the short term that is the early next week pullback process to seek opportunities to do more The third step to seek the best trading time, the best trading time, the core The requirement is only to make informed buying and selling Now look at the hourly chart of the euro against the U.S. dollar, the previous five days of sideways trading to remain between 1.2295 and 1.2430, after Thursdays upward breakthrough yesterday back to such a channel range, at this time we seek short term pullback opportunities to do more euro, according to the conclusions just drawn, now the only informed buying point in where? Now look at the lower edge of the upward channel (red support line in the above chart), so I developed such a plan, early next week trading opportunities, consider the entry point in the retracement of 1.2350 near, this is the initial plan, early next week will be based on the rhythm of the retracement to determine whether the end of the short term retracement; stop loss price selection 1.2295, if the price is broken, the euro may face the end of the medium-term rebound trend Risk; and short term target reference to 1.2580, which is the daily chart in the large downward channel near the lower edge, and then assess the profit and loss ratio, should be appropriate, after comprehensive consideration of the position can be operated as 2/3 position Next consider the fourth step in the fourth point, the unexpected changes in the plan, such as the euro retracement range if less than 1.2350 how to do? Rising market are rhythmic, in the process of rising will certainly provide other intervention signals, such as the relay pattern, and do not chase the buy at the beginning of next week short term up, but did not get rid of the risk of continued retracement; another accident, that is, the euro early next week to adjust the speed of more than expected, may break 1.2350, oscillating between 1.2295-1.2350, this time it is necessary to take extra control Our four-step process in step 3, that is, choose the best time to enter, not to go ahead to judge the adjustment has ended, and let the market itself out of the low, we will then determine it; and the euro once below 1.2295 may appear to worsen the situation of the medium-term trend For those who have positions, the current euro daily chart medium-term trend is still up, this time you need to do is to continue to hold, to raise your stop loss to 1.2295 a line, the next concern 1.2580 and 1.2680, which is only we are concerned about these two price levels, when the top signal does not appear before are continuing to hold until there is a clear signal out before leaving the field Just combined with the euros trend of actual combat to talk about the use of systematic trading four-step process, the initial plan derived at the beginning of next week to implement, the implementation of the process of attention to grasp the best time to enter, do not in The euro short term down speed is fast when grabbing the bottom, pay attention to whether it meets the best trading timing, decide whether it is necessary to change the trading plan Previous 1 2 3

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