Seeking Me in My Eyes (14) How to think about establishing a reasonable and effective trading system?

Recently, reading my blog on Sina made me have a new understanding of transactions. Some of the views in this article are completely different from those familiar to the public, so I will reprint it in full.

 

The original text is as follows:

A [savvy] trader changes the trading habits of fundamental analysis and prediction and technical analysis and prediction by constantly learning, constantly recognizing and correcting the original wrong trading concepts [...]

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This stupid system is not stupid at all

On Hexun, I saw a post titled "The system is too stupid, but it can make money, depending on your potential, as long as those who can implement it come in". It is very simple. The author mentioned that if the method of lineation is used properly, it can really make money. This method is different from the 30/120 method described by my husband The method of hal5667 is to draw lines. Relatively speaking, the subjectivity of artificial lineation is much stronger. 2. Netizens Hal5667 said that the stop loss point is very small, 0.5%, which is obviously too subjective. 3. Netizens Hal5667 advocates closing positions in batches rather than at one time. Nevertheless, I think the concepts of the two methods are similar. They are a system of high probability returns through classified statistics of market quotations. There are probability and humanity behind them.


      

The netizen whofor's comments on the following post are somewhat contradictory. He first said that the market is random, and then said that there is a trend in the market. He mentioned“ The bet is not that the price will rise or fall, but that the price will be far away from the position. If you are familiar with options, you will roughly understand that this strategy is actually a dynamic copy of the up crossing combination of some options ”I personally agree with this view. Taking the 30/120 rule of my husband as an example, people who use this rule are like option traders who are long in volatility. What they bet is that the price will stay away from the moving average for a period of time. If the price is wrapped around the moving average for many times and slightly, there will be losses, However, the option traders who short the volatility during the period when the moving average and K line are intertwined can make money instead. This netizen calls this method“ A key that may kill all markets and varieties ”, very visual.


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On Hexun, I saw a post titled "The system is too stupid, but it can make money, depending on your potential, as long as those who can implement it come in". It is very simple. The author mentioned that if the method of lineation is used properly, it can really make money. This method is different from the 30/120 method described by my husband The method of hal5667 is to draw lines. Relatively speaking, the subjectivity of artificial lineation is much stronger. 2. Netizens Hal5667 said that the stop loss point is very small, 0.5%, which is obviously too subjective. 3. Netizens Hal5667 advocates closing positions in batches rather than at one time. Nevertheless, I think the concepts of the two methods are similar. They are a system of high probability returns through classified statistics of market quotations. There are probability and humanity behind them.


      

The netizen whofor's comments on the following post are somewhat contradictory. He first said that the market is random, and then said that there is a trend in the market. He mentioned“ The bet is not that the price will rise or fall, but that the price will be far away from the position. If you are familiar with options, you will roughly understand that this strategy is actually a dynamic copy of the up crossing combination of some options ”I personally agree with this view. Taking the 30/120 rule of my husband as an example, people who use this rule are like option traders who are long in volatility. What they bet is that the price will stay away from the moving average for a period of time. If the price is wrapped around the moving average for many times and slightly, there will be losses, However, the option traders who short the volatility during the period when the moving average and K line are intertwined can make money instead. This netizen calls this method“ A key that may kill all markets and varieties ”, very visual.


[......]

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Find Me in My Eyes (10) Is there an eternal and effective trading system in the world?

So far, is there any need to discuss whether the "rule trading law" is effective? Believe or not, everything is doomed.

 

Now, I want to talk about whether there is an eternal and effective trading mode in the world.

 


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So far, is there any need to discuss whether the "rule trading law" is effective? Believe or not, everything is doomed.

 

Now, I want to talk about whether there is an eternal and effective trading mode in the world.

 


[......]

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Find Me in My Eyes (7) Will the trading system be permanently effective?

A few days ago, I discussed with a friend named Statistical Analyst about the double moving average trading system here. The controversial point is that the friend thinks that even if such trading system is effective today, it does not mean that it will be effective tomorrow or forever. Historical data shows that some double average trading systems will suddenly die at some time. However, I believe that the 30 minute 120 line trading system I recommend (plus a short line is the double moving average trading system) will always be effective.

Interested friends can see the discussion messages.


[......]

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A few days ago, I discussed with a friend named Statistical Analyst about the double moving average trading system here. The controversial point is that the friend thinks that even if such trading system is effective today, it does not mean that it will be effective tomorrow or forever. Historical data shows that some double average trading systems will suddenly die at some time. However, I believe that the 30 minute 120 line trading system I recommend (plus a short line is the double moving average trading system) will always be effective.

Interested friends can see the discussion messages.


[......]

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