rebateinforextradingg to achieve stable profits or even huge profits, learn to rabest forex rebatee the size is one of the essential courses, as the saying goes, raising the size is the secret of successful traders! Here to study the advantages and disadvantages of the……" />

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To make stable profits in forex trading adding to positions with and against the trend is a must learn course for traders!

2023/2/26 12:55:04  Classification:   Participation: 4  

Forex trad cashback forexeforex.com">rebateinforextradingg to achieve stable profits or even huge profits, learn to ra best forex rebatee the size is one of the essential courses, as the saying goes, raising the size is the secret of successful traders! Here to study the advantages and disadvantages of the various types of markups first to imagine a random walk price fluctuations (see the following chart, the famous binomial tree diagram): B0 is the starting point, the corresponding price is 10 yuan in the B0 point to open a position at the price of 10 yuan after opening a position, the price has a 50% probability of rising from 10 yuan to 11 yuan (to reach the U1 point), there is also a 50% probability of falling to 9 yuan (to reach the D1 point) Assuming that after 1 time interval the price is to reach point U1, after rising to $11 to reach point U1, the price likewise has a 50% probability of rising from $11 to $12 (to reach point U2) and a 50% probability of falling back to $10 (to reach point B1) ...... So, it is easy to calculate that if a position is opened at point B0, either Open long or short, then the expected return is 0, which means that as long as the time is long enough, the trader rebatemeaninginforex only do at most to preserve the capital 1, the expected return of 0, it is useless to increase the position Lets say: assume that at B0 open more than 1 lot, (1) homeopathic pyramid to increase the position for example, if the price falls to D1 then stop loss to close the hand; if the rise to U1, then add 0.5 lots... ...then you can calculate the expected return of such a homeopathic pyramid to add a position: possibility 1: 50% probability of falling to D1, a loss of $1, because the probability is 50%, so the expected return is 50% × (-1) = -0.5; possibility 2: 50% probability of rising to U1, at this point to add 0.5 lots, after adding a position: possibility 2.1: 50% probability fall back to B1, a loss of $0.5, because the probability is (50%) 2 = 25%, so the expected return is 25% × (-0.5) = -0.125; possibility 2.2: 50% probability of rising to U2, the total profit of $2.5, because the probability is also 25%, so the expected return of 25% × 3 = 0.625 So, the total expected return = -0.5 - 0.125 + 0.625 = 0, still zero (2) counter-trend pyramid to add positions for example, if the price rises to U1 on the stop gain to close; if the fall to D1, then add 2 lots ...... then: possibility 1: 50% probability of rising to U1, profit of $1, the probability is 50%, so the expected return of 50% × 1 = 0.5. Possibility 2: 50% probability of falling to D1, at this point add 2 lots, after adding: possibility 2.1: 50% probability of rising back to B1, profit of $2, the probability is (50%) 2 = 25%, so the expected return is 25% × 2 = 0.5; possibility 2.2: 50% probability of falling to D2, a total loss of $4, because the probability is also 25%, so the expected return is 25% × (-4 ) = -1 so, the total expected return = 0.5 + 0.5 - 1 = 0, or zero 2, the nature of homeopathic and counter-trend position increase the same to open more, such as the size of the position as an example: (1) homeopathic position increase homeopathic position has a very good nature, there is also a very bad nature 1) good is good in that it can control the scale of losses, while amplifying profits because if you want to achieve a position increase, then the first position must be a light position For example, if you plan in advance to prepare 5 bestforexrebate to increase positions, then under the equal scale increase, we should divide the capital into 5 parts, and only put 20% of the capital at B0 in the above chart, so that if the price drops to D1, although the drop is 10%, the total capital only loses 2%. (12% or so of the total capital return so that a success can top 6 times the failure of 2) The bad thing is that the homeopathic position rebatesinforex significantly reduce the number of profitable transactions, for example, according to the assumptions in the above chart, if the position is not used, then buy more at B0, an average of 500 times out of every 1000 is profitable, the price will rise to U1 but, after the adoption of the homeopathic position, assuming that the size of the position is equal If you buy more than 1 lot at B0, then on average 500 times out of every 1000 times the price will rise to U1, after adding 1 lot at U1 on equal scale: 250 times out of these 500 times will return to D2 on average, although the price will just return to $10, but because of adding 1 lot at U1, so the overall loss will be $1. In addition, 250 times on average will continue to rise to U2, according to the rules at U2 Continue to add 1 lot after the second increase: which on average another 125 times will fall to D3, this time although the position opened at B0 is a profit of 1 yuan, but the position added at U2 is a loss of 1 yuan, so the overall is just flat; another average of 125 times will continue to rise to U3, if the time to stop, the overall is achievable profit of 6 yuan so that, due to the trend of adding positions, the loss of The proportion of the number of transactions increased to 75%, in addition to 12.5% of transactions can only be flat, only 12.5% of transactions can achieve profit, although the profit will be very large in another way, not to add positions, as long as the price rises to achieve profit, but after the homeopathic position, as analyzed here, the price must be at least 3 segments of continuous rise above, in order to achieve profit; continuous rise of 2 segments can only If the price rises by only one, the final result will be the same as if it had fallen at the beginning. As pointed out in the previous introduction of the effect of stop-loss, the use of stop-loss will reduce the success rate of trading and will cause sharpening of the traders psyche, but with the method of adding positions to the trend, the rate of profitable trading will be reduced much more than that of stop-loss, which will cause greater sharpening of the traders psyche. In the stop loss example I gave, the maximum number of consecutive losses was 22, but if you take a homeopathic position, it is a piece of cake to take 22 consecutive trading losses. For those who use the homeopathic method of adding positions, the number of profitable transactions can reach 30% is already quite outstanding. Therefore, it can be imagined that if you want to use the homeopathic method, you must have a prior estimate of the space for the rise and fall of the trading species, or at least should be able to enter the market only when you estimate that the space can accommodate more than 3 times the increase of positions. By giving up part of the profit when the amount of profit to improve the number of profits to reduce the pressure on the psychology (2) counter-trend position increase counter-trend position increase also has a very good nature, and a very bad nature 1) good is good in the number of profits can be significantly increased, such as the above chart, such as the size of the counter-trend position increase method, after opening more than 1 lot at B0, the average of 1,000 times there are 500 times will rise to U1, a profit of $1; another 500 times will rise to U1. Profit 1 yuan; another 500 times will fall to D1 at D1 counter-trend to add 1 lot, after the position: 500 times in the average of 250 times will rise to U2, although the price is back to the starting point, but the position added at D1 can bring a profit of 1 yuan, close the position increased at D1, can make the position cost from 10 yuan down to 9 yuan; another 250 times will continue to fall to D2, continue to add 1 lot, after the position: the average of 125 times will fall to D2, continue to add 1 lot. After adding positions: 125 of them will rise to U3 on average, this time although the position in B0 will lose $1, but the increased position in D2 will bring a profit of $1, making the overall still be able to tie this time if the 2 lots of positions added in D1 and D2 are closed, still able to make the cost of the position from 10 yuan to 9 yuan how good it is! This nature of the counter-trend position, is really appreciated but there are 125 times will continue to fall to D3, this time it is worse, although the price only fell 3 yuan, but the total loss of the storm increased to 6 yuan So, the use of counter-trend position, you can make the number of profits from the original 50% to 75%, and there will be 12.5% of the number of times to close, only 12.5% of the number of losses will occur If you want to continue to increase the proportion of the number of profits, then the use of double or higher times the pyramid to increase positions, the price of each period of decline, the position to increase 1 times or more times, so that at least the number of profits to more than 90%, so that the loss completely into a small probability event, but the cost is that once the loss is destroyed 2) The bad place is that the loss does not happen, then already, a big loss is happening this is the same as many Traders, like the usual performance is very good, but a trouble will be a big trouble 3, with the trend to increase positions or counter-trend to increase positions? More people will recommend a homeopathic position, because it will not endanger the survival of the but also said earlier, in the example of the expected return of 0 assumed here, whether homeopathic position or counter-trend position, or ultimately can not make money, so the first position is only a change in the distribution of profit and loss trading skills, homeopathic plus and counter-trend plus, each has its own strengths and weaknesses in the art of war, the army seeks to comply with the time and place to increase positions as a Trading in the use of funds, also like the use of military, use should also be considered the conditions of the time and place, and should not be closed in whatever conditions are homeopathic plus or counter-trend plus for example, counter-trend plus position, as mentioned, can greatly improve the number of profitable transactions, have the absolute ability to compress losses into a small probability event problem is that the compressed loss is like a spring, once the miss, the However, in order to rebound, the spring must be with the help of a hard plane, if the spring is pressed on the sand, the spring has no chance to rebound This is the effect of the use of the location of the same reason, lets say you look at a certain undervalued stocks, after analysis, that even if the sky falls, the price is at most only $1 down space, then you can use the counter-trend to increase positions To make a simple analogy, divide the maximum 1 yuan of down space into 2 sections, every 0.5 yuan for a counter-trend position, and at the same time, divide the funds into 3 parts, put 1 part of the funds in the current price to build a position, every 0.5 yuan down to add 1 part, every rebound 0.5 yuan to increase the position to close everything after the proper arrangement, you can just how the price changes, you can make money steadily local this is in Fully rely on the stock price is undervalued this favorable "terrain", with this location to make up for the defects of the counter-trend position, so that the loss from a small probability event into a zero probability event chat here, should have been able to feel, homeopathic position is like playing offensive war, counter-trend position is like playing defensive war to play a good offensive war, naturally require a large front To play a good defensive war, it is required to have geographical conditions to rely on is offensive, is defensive, to first examine the conditions on the battlefield, of course, the most ideal is to find such an entry point, there is a huge space in front of the attack, and behind a solid geographical location to rely on, so that even if the situation is not good, still can comfortably rely on the location of resistance, slowly build up strength; a wait for the situation to turn warm, then They have also become strong in the defense, you can easily turn from counter-trend position to homeopathic position to achieve the conversion from defense to offense that, if you think about it again, whether it is homeopathic position to attack or counter-trend position to defend, these two methods of increasing positions belong to the battle of positions to play a good choice of entry point as the initial position, and then from this position, or layer by layer, or resistance to both methods of play. Or section resistance to these two methods of play, to play out a, are time-consuming and costly, but also requires a large amount of money available for deployment, so the two methods of play, the first is to review the battlefield conditions, choose an initial position into the attack, retreat can be defended, and then is based on the time and place, careful deployment of forces, the development of troop deployment plan 4, how many times should I add positions? The design of the number of counter-trend position increases has been explained in the above example, as for the homeopathic position increases, consider this example: or use the foremost binary tree diagram, but now change to assume that at each node, the probability of rising and falling is still 50%, but when rising is up $1, when falling only down $0.5 so that the expected return becomes 0.25 The purpose of this change is to make the expected Because if the expected return is 0, then no matter how to add can not gain, so you can not see the effect of the position to let the expected return is positive, in order to show the effect of the position to add for simplicity, or use the method of equal size to add the position the following chart shows the expected return corresponding to the number of various additions under the equal size homeopathic position is obvious, the more the number of homeopathic position, the higher the expected return this is reflects a widely circulated market statement, that is, once the homeopathic position, the best choice is, as long as the trend is continuing, do not stop profit, but to continue to add resolutely "do not die until the yellow river heart, do not see the coffin does not shed tears", until the trend reversal as long as the price dares to rise to heaven or fall to hell However, in this figure, it is also obvious that when the number of positions is increased for the 10th time, the growth of the expected return is already extremely close to the limit, and the increase of the expected return is already minimal if the positions continue to be increased due to the limitation of the amount of capital, it is impossible to divide the capital into 100 or 1000 shares in order to implement the plan of continuous position increase. At the same time, it is also because the amount of own capital is limited, so those who are used to using homeopathic positions must almost always do margin trading because only margin trading can make homeopathic positions more profitable. The person who increases the position can still have a continuous flow of funds for unlimited position increase without paying interest 5, the capital curve under the method of increasing the position This chart is the capital growth curve generated by using a certain homeopathic method of increasing the position on the HSI This curve is very typical: the process of capital growth, first a longer period of continuous slow decline, and then suddenly there is a large profit or several times to raise the level of capital to Then there is a long continuous decline, followed by a sudden big profit, which raises the capital to a new level. ...... This curve is not easy for everyone to accept.

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