The psychological qualities usually include fear/pain management/optimistic mood management, which is related to the resistance of the manipulator in the trading, the ability to maintain discipline. People with trading experience must have their own experience, and if they want to manipulate large amounts of money, they must practice how much heart, this part is like drinking water to warm the consciousness, many people have suffered enough pain is not enough for the extraneous.
The ability to innovate is the ability to evolve, and each participant's perception and adaptability to the transaction are different. In Lee's book, Freeman is aptly compared to the super-Asians: successful traders must rely on a passion for martial arts, constantly adapt to the market, constantly learn new things and follow the evolution of their opponents. Some people are born with a high sensitivity to the market, and their systems, like seagulls, need to learn to evolve.
3, Psychological qualities and innovation, both of which are referred to as "mindset" by the team, but the topic of this article is "functional methods": the basic architecture of quantitative trading - the fund management and strategy module.
The old traders in the memoirs always describe the story of painstakingly drawing graphics on paper. Thanks to the development of computer software and hardware, the current technical analysis no longer requires the gradual application of measurements and pencils to follow the report printed by the quoting machine, and is replaced by the technical analysis charts provided by the brokers. Even worse, because of the popularity of Internet technology, the explosion of knowledge transfer speed, the evolution of trading software and language programs, traditional analysis technology has not been able to satisfy the general or professional traders, the war of this year has moved further into the battlefield of automation. Today's traders are able to build their own weapons and weapons through existing quantized platforms (e.g. Excel VBA/Inventor Quantization/Matlab/C++/Python) to assist them in continuing to operate in this ever-growing online gaming world, without interruption to fully realize their trading ideas.
5. A basic quantitative trading system has roughly two layers: the money management and the (commodity) strategy layer; the framework (module) is decided, and then the individual modules are systematically strengthened, thus coming closer to the nature of the transaction.
Most novice traders select a neighboring market, such as forex or familiar stocks, futures, options, and develop a strategy. A framework for a basic strategy can be roughly divided into several modules, according to which a designer can write an initial strategy development or trading program:
This is the most commonly recognized technical analysis, such as the even line, KD, MACD, Dongguan channel, Brin channel, etc. indicators that are familiar to everyone, the players in the field want to be able to detect the current state of the market, is more or less empty. Therefore, when designing multi-space indicators, the grid trading team is mainly based on the basic model of non-over-and-over-empty indicators (not talking about trading risk here), for example:
If Close > Average (High, N) then buy 1 share next bar at market If Close < Average (Low, N) then short 1 share next bar at market;
This module is mainly aimed at determining the direction of the multi-space strategy, i.e. the positive negative number of the trader's order. Many people may have a question in their minds - not many or empty? What about the state of the karate?
2. Filter
The filter's function is to "filter out noise and false signals", which can be in either price mode (e.g. key price) or time mode (specific trading time). It uses some kind of noise reduction technique to distinguish between situations where the market is more noisy or more noise, reducing unnecessary or more unfavorable trading behavior.
3.进场讯号
The actual input-output logic, which is performed after taking into account multi-space indicators and filters, can be divided into basic lists and card lists. The following example gives the actual input-output logic using multi-space indicators:
"When the closing price is above the median and touches yesterday's high, it's too much". "When the closing price is below the median and touches the low of yesterday, the market will open".
Signal encryption
The card signal can be considered an extension of the input signal, and can also be judged by using a multi-space indicator and a filter, or in other ways. For example, in the trading method of the shark, the basic unit of the input signal is partly encoded in several floating losses or other special situations.
5.出场讯号
The following are some of the ways in which the exit signal can be used:
a) Use the reverse signal as an exit signal. (b) The basic application of the P-value is described in the book Way of the Turtle: The Secret Methods that Turned Ordinary People into Legendary Traders. (c) a list of specific extreme conditions, such as explosion, plunge, and fall.
Position sizing and risk management
This is a type of filtering, but it is presented in a dynamic way, with the principle of reducing the size of the part when the risk is high (high noise) and increasing the size of the part when the risk is low (low noise).
以上大致为拟定一个策略的基本框架，当交易者将设计完成的基本策略放置到市场后，它就成了为辛勤工作并有获利能力的一位小员工。.
After a period of market survival, traders will gradually increase the complexity of their commodities and strategies, and when the number of employees increases or even crosses the global market, the next critical layer is needed: money management. This level of technology requires the assistance of third-party software such as Excel or self-writing programs.
The Fund Management Module also has several components:
1. Reinvestment (reinvestment and risk management)
It is used to create a structure for managing profit and loss, creating a mechanism for winning or losing. Einstein said: the power of complex profit is more amazing than the atomic bomb, in fact, this is the key to the victory of the trade.
2. Strategic endpoints (risk management)
It is used to manage the movement of goods in and out of the system, and to ensure that the correct up and down mechanisms are used in the strategy.
3. Priority processing of the signal
When funds are limited, but there are too many suitable goods or signals to order, it is used to determine which signals have a preferential uptick or preferential discount.
A complete set of quantitative trading systems has gone beyond the traditional trading paradigm, and when it is designed as a weapon, the traders of the embedded system enjoy a highly competitive advantage in the market.
MAIKEOThank you for sharing!