Several core connotations of trading system

1: The core of mentality
In the period when the trading system does not propose to be tradable, how to correct the mentality and achieve the unity of the heart and the line is the primary condition for the trading system to play the role of system trading. If a good trading system can't tolerate short positions because of its rapid mentality, or if it is reasonable and forcibly intervened only when it sees those stocks soaring but doesn't know how to control the risks, then the failure caused by breaking away from the control of the trading system can't be attributed to the failure of the trading system procedures. It is the failure of mentality that leads to the failure of the trading. Therefore, I think that mentality is the most important, which determines the success or failure of the trading system.
2: The core of gain and loss
Different starting points of funds have different gains and losses. For example, if one million is twice as much as thirty thousand a year, the transaction order is the same. However, if one million is mastered, the income target will be reduced to 50% a year. If the income is more than thirty thousand, the psychological and technical requirements will be greatly reduced. Therefore, it leads to different nature of trading system. One million individuals are likely to value the middle line trading system, and 30000 individuals are likely to value the short-term trading system.
3: Technology core
There are three profit models in the market: oversold rebound, high sell low absorb, strong chase high.
1》 Over fall rebound, over, over to what extent will reverse? Play, play to what extent will fall?
2》 High throw low absorb, high, high to what extent is high? Low, how low is it? Inhale, inhale once or many times?
3》 When can we catch up with the strong, when can we catch up with the strong, and when can we not? To what extent can we catch up?
Oversold rebound
Different people have different analysis bases, so the definition of this super can be realized by using historical statistics. For example, if the high point drops by more than 60% and the shape, trading volume distribution and other technologies are all appropriate, then this super is the definition of inevitable reverse. The success rate of historical statistics should be very high. If it is still very low, then it is not super high.
High throwing and low absorbing
In my opinion, formally, it should be the product of a certain channel, reaching the upper track of the channel, throwing, reaching the lower track of the channel, and low absorption (in your system, you use brin line to operate, but you must analyze the state of the whole trend. If you are in the process of sorting out the trend, it is a very feasible technical analysis index, However, if it is obviously in an upward or downward trend, then it is wise to use trend line and channel line - of course, it is also applicable in sorting out the trend, so as to avoid the fuzzy or wrong signal sent out by swing index such as brin line). The lower track of the channel is always below the K-line, and the small probability is above. It should be the bottom reading system signal. The upper rail of the channel is always above the K-line, and there is a low probability that it should be the signal of the escape system—— It's the same as brin line.
Strong pursuit
When the index forms an intermediate market, it is safer to catch up. It is also possible to catch up in the downward channel, but it depends on historical statistics. In fact, strong pursuit is an irrational operation. In the period of chasing high, we can be sure that we have funds in hand, the market is rising, and this part of funds is short. Then, if there are the above two trading systems, there will be no short. There's only a difference in speed.
4: Control core
In the signal period of trading system, because there must be uncertainty, capital management is needed to reduce the uncertainty (even called risk) to the maximum controllable degree, which is not the content of technology trading system. Suppose that a technology trading system with a success rate of 70% can be promoted to 80% if capital management is added, then the success rate of this technology trading system is 80%, not 70%.
5: Tracking core
In the signal period of the trading system, and trading intervention. Whether the future trend tracking system has the possibility of changing the market. If it does, it will stop winning immediately. Therefore, a good trading system should have a good trend tracking system to determine the end of the trend, so as to make profits run.
6: Short core
When there is no signal in the trading system, whether it can achieve the psychological quality required by short positions is also a major issue for the success or failure of the trading system.
From this, we can clearly see that the technology trading system is only a part of the trading system, not all. When the signal period of technology trading system appears, it is not the system making decisions, in fact, it is people making comprehensive behavioral decisions. A good trading system, including the mentality, technology, requirements, patience, control and so on. Therefore, the trading system is a comprehensive analysis system. To solve the decision-making system in the right time, the right object and the right behavior.