Trading mindsets: timing of entry and exit AND classification processing of trading strategies

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The timing of the game

When we do our strategic research, we encounter a lot of uncertainties about whether or not to leave. Many financial products fluctuate significantly more during the day than others, and this pattern of price movements during the day is worth analyzing in depth.

• He was on the sidelines. The time of day is very important for establishing an effective trade, and time conditions can be applied to the entry and exit of the trade. Many traders and funds tend to leave at the time of closing, so there will be significant fluctuations in the volume of transactions and price movements at the time of closing.

• Distribution of mobility time For CTA's fund managers, capturing the timing of entry and exit nodes to make the most of market liquidity, reducing slippage points, is a key factor in improving fund performance. Most financial products tend to have a U-type liquidity, i.e. high liquidity at opening, low liquidity at closing, and low liquidity at the end.

• Mandatory entry and exit rules and optional entry and exit rules In fact, trading rules can be divided into two categories, the first being mandatory rules, such as extreme loss and firm stop loss; the other being optional rules, such as profit stop and other exit conditions. In fact, all our strategies are to write articles at the start of the game, and to play games are just a few common stop-loss methods. But in any case, the inclusion of time condition filters in these optional rules can often effectively improve performance.

• Further analysis We can be inspired by this. For some types of contracts, there are often extreme movements at certain points in time, and if our trading direction is correct, a stop at this point can be extremely efficient.

• Research tests To do the simplest test, you can try to enter at the end of the first 10 minutes k line of the opening and the last decimal point of the closing of the second 10 minutes k line, with this method you can potentially get a strategy performance boost.

• Inspired Investing in timing, focusing on the characteristics of different products and studying the relationship between their price movements and the time of day, is a good new idea for strategic research.

Classification and processing of trading strategies

After trading for a long time, you will gradually feel that the trading strategies in the market are very different, it is possible to classify the strategies into categories, for some of your favorite markets, each category is suitably developed several conventional strategies, to produce a multi-strategy combination, the effect is often far beyond your expectations. In fact, most of the strategies in the market have covered all aspects, it is very difficult to develop a completely new strategy entirely through your own creativity.

In addition to the above-mentioned strategies, there are also other strategies that can be used to help you understand the implications of each strategy and apply them to your situation, and implement them in your own language.

Classification of trading systems

• The first is trend tracking.

  The trend-type strategy is in fact a big fluctuation, and the market will certainly not fluctuate from day to day. On most flat trading days, the trading price tends to be concentrated in a narrow range of repeated fluctuations, when the trend strategy will repeatedly stop losses leading to continuous losses. The following are common trend types of systems, their specific strategies and trading patterns can be searched online:

  1st, the shark trading system 2, the trend line breaks through the trading system 3, volatility breaks through the trading system 4th, the channel breaks through the trading system The 5-week rule 6 News trading system 7 The MACD trading system The EMA trading system 9 The equity trading system 10th, the triple-platform trading system 11 SAR trading system 12 The OBV trading system (Also known as: binary even-line trading systems, crown even-line systems, time price breakouts, LSS multi-space strengths, single even-line trading systems, static systems such as mountain SAR, floating volatility breakouts, Shark laws, etc.)

In fact, the above systems can be combined or slightly modified to capture all kinds of large volatile markets. Their principles are simple and effective. Unfortunately, trend strategies inevitably repeat losses in volatile markets, so they need to be combined with other strategies to smooth the capital curve.

• Second, the class of counter-trend oscillations

  This type of strategy consists of repeatedly successfully capturing small shocks, buying high and buying low in a range, and repeatedly trading both sides. If a large market is encountered, a flat stop loss is exited. This strategy is often profitable for a period of time, but losses are greater at a time. Individuals feel that the shocks strategy can be combined with a trend strategy, better hedge against the losses of the shocks market, so a good shocks strategy does not require how much money to make, only the larger the market does not lose too much, the shocks can be repaid, and the correlation with the trend strategy is better. The most common tactics are:

  1 The Law of Net Transactions 2 Coastal trading system 3 False breakthroughs in the trading system 4th, the Brainstorm trading system 5 The Jones Channel Trading System 6 Classic K-line trading system 7 RSI trading system 8 KDJ trading system 9 The exchange rate trading system 10th, Jiang'an called back the exchange system 11. Technology is moving away from the trading system 12. Quantity pricing deviates from the trading system (Also included are: Victor123 rules, BOLL channel trading, anti-quarter rule, SLOWKD, single-swing oscillation principle, LSS axis point cap, BIAS trading system, price channel trading, ROC dynamic oscillation, fractional trading system, etc.)

• Third, bandwidth trading

  The band trading can be considered as a trend trading, their entry is a bit fancy, you can understand, rich strategy configuration:

  The first is the Wave Trading System. The second is the Paradise Hell trading system. 3, the rectangular trading system 4, flag-shaped trading system 5 The conical trading system 6, the triangular trading system 7 and 8 segment trading systems 8 Wave theory trading systems 9 123 rules trading system 10 Oh, and the sky-diving trading system 11th, the middle-of-the-road trading system in Jiangsu 12, time cycle trading system (Also available are the two-wave bottom formula, KDJ half-empty reversal, ADX binary trading, RSI half-empty reversal and other systems)

• Fourth, preferential coverage

  For individuals, the funds are limited and there is no delivery right for commodity futures, so it is more difficult to make cross-term and cross-market arbitrage. But it is also possible to find some kind of advantageous pattern, and if you want to do a strategy of advantage, you can start from the following directions:

  1, risk-free long-term leveraged trading system (sub-varieties) 2 The system of cross-variety arbitrage 3rd, the system of trading in soybean oil 4, cross-market arbitrage trading system (varieties, markets) 5. Butterfly leveraged trading system 6 The price difference trading system

• Five, short-term trading within the day

  Daytime short-line strategies are more flexible, while avoiding the risk of overnight jumps. However, only T+0 varieties can be done during the day and require a large enough daytime volatility of the varieties. Day trading strategies can also be divided into trend and volatility categories. Day trading strategies are easy to retrace very nice capital curves, but they are affected by slippage factors, so it is necessary to strictly account for slippage points and other trading costs. The following are common tactics:

  1st, the early psychological trading system 2 The trading system of the gap 3rd, early breakthrough of the trading system 4, Cross-platforms break through the trading system 5th day of trading system 6. High and low point trading system 7 day trend line trading system 8 ̊ time chart triangular trading system 9 days of grid trading system 10 BTOB trading system 11%, 100% withdrawal of trading system 12th, the transaction exchange system

• 6. Other trading systems Not collected

The above trading systems are some of the most common strategies in the market, which are used by many people and have limited profitability. If your computer skills and mathematical skills are great, you can also develop some probability analysis strategies, statistical regression forecasting strategies, basic message driving strategies, etc.

Additionally, for active contracts in the Chinese futures market, the daily statistical regression strategy is still very effective at the moment, and I am currently running this type of strategy in real time, with little profit, and hope for good luck in the future.