Here, I think a qualified trading system needs to meet a few basic conditions.
First, the trading system should include opening conditions, flat conditions and money management (always full stock is also a money management), only buy and sell not trading system, not talking about positions only talk about indicators or trading system. The winning rate is not important, the first day the fall and stop the loss, the next day the rise and more, this behavior will be sprayed by many people, say you chase the fall is pumpkin, in fact for a trend trading, there is nothing wrong, the trend following the drop, what is wrong?
Secondly, the core logic of the trading system must be reliable, there can be no strong assumptions, there can be no black box algorithms. For example, what Fibonacci time window, gold split target, what five-wave upward three-wave feedback, what top-bottom segmentation in X say X, all belong to strong assumptions, why do you get to a certain time window, a certain price, forming a certain K-line shape and not be able to jump?
Thirdly, the trading system should basically meet the principle of consistency, that is, what is the logic of buying, and when selling also corresponds to the disappearance of this logic, you can not break the 60-day buying average, fall below the 10-day average and run, a moment look at the MACD, a moment look at the KDJ, a moment to draw the trend line, the flower green indicator a bunch of screens, say the head is right, the trade collapses.
Fourth, there can't be a phantom bubble, that is, you can't imagine the future of the stock, and the stock must go according to our imagination? As a trader, we always make some predictions. It is inevitable that since we predict the market, we may be hit, wrong or wrong, this is not something unseen, but it is not important that you predict what happened to the bull, but you predict wrong, how to remedy?
Fifth, the historical review of the performance, can not rely only on one or two years of the bull market, while other years perform flat, if you miss a few years of the bull market, this strategy can only eat bread?
Finally, of course, several commonly used indicators of the trading system must be passed, such as the ageing rate of return, the run-win margin, the beta value, the Sharpe ratio, etc. Recently, the XX model of a red-headed V on Weibo has gained popularity, and I think that the XX teacher is worth referring to mainly because of his discipline in the firm and steadfast implementation of the trading strategy.
I'm not a high level, I've been in the market for a few years, I didn't get much results, but the losses, the lessons I've learned are countless, I've been very successful in quantifying this investment, I've been lucky enough to share the selflessness of the leaders of the elite, I've been able to touch the stone across the river, I've been thinking about these years of investment, I feel deeply for most people, honestly investing in index funds is the most time-saving way.
I'm going to post this post in the hope that I can throw away the lead and bring some thought. I understand this article: