The price strategy of the Fiat 4

The price strategy of the Fiat 4

• Some basic concepts

  The FIAT price is a short-term trading system based on yesterday's closing price, yesterday's high price, yesterday's low price and today's opening price. The FIAT price system is also summarized by the latter, not by FIAT itself. The system is just a trading strategy framework that contains FIAT's subjective components. From the information currently available, the inventor of the rangebreak system is Larry Williams, the inventor of the William indicator, and he has many other identities besides the William indicator and the rangebreak system. In 1987, he was still an unnamed legend, but in that year, he took part in a trading tournament held in the United States. A year later, Larry turned his initial $10,000 investment into $1,147,607, 114 times that of the tournament's champion. Ten years later, Larry's daughter Michelle Williams, who was also an actress, took part in the tournament to commemorate 10 years of Larry's championship. In this tournament, she turned $10,000 into $110,094 and was the trading champion of the year. We know that Japan has always learned from the United States. In 2000, Japan also held a similar tournament, the Robins-Taicom Futures Championship, but unlike the American tournament, the tournament lasted only half a year. The first place was taken by the FIA. If the ranking is calculated by weekly earnings, FIA has never left the championship throne in the half-year competition, which shows the stability of his profits. Fiori and the current runner-up, Anokuni Daohya, co-authored a book titled 1000% Men of Steel Futures Champion's Miracle Trading Method, written in the first half by Fiori and in the second half by Anokuni Daohya. Fiori is written in the form of a diary, so it is difficult to see Fiori's summary of trading theory and trading methods unless you study each of his trades and the accompanying graphics and refine his methods according to his words. The FIAR price is a summary of the FIAR trading method. It does not represent the whole FIAR trading backbone, we can only see the form from the outside, so we can only add our own understanding on this basis, to see if we can form a method that is effective. The basic approach to the Fiat 4 price is as follows: Upper tracks = the highest point yesterday; The lowest point of the day. The price has been pushed upwards and upwards, and the price has been pushed upwards and downwards, and the price has closed. However, if this method is used, and only two prices are involved in the highs and lows of yesterday, then at most it can only be called a Binary Option. What are the other two prices? Under normal circumstances, the four FIAR prices are easy to operate. As in Figure 1, the opening price is within the range of the previous K line. When the price breaks the previous highest or lowest price upwards, a corresponding multi-order or blank order is established.

  

  Figure 2 shows the trend of the Screw Steel 1601 contract from 24 June to 27 July 2016. The highest price of the K line on the left-hand side of the chart is 2109 so when the second K line breaks out of 2109, a multiple order is established in 2110. Holding to close 2207 closing. Profit 97 points, 970 yuan per hand.

  

  Figure 2 Contract 1601 for Screw Steel from 24 June to 27 July 2016

  However, what if the price breaks the high or low and then returns to the original range? Figure 3 is based on the above example. When the price breaks the high or low again, immediately stop the loss after breaking the opening price of the day. This is the role of the opening price of the day in the trade.

  

  Figure 3 Breakout after breakout

  Figure 4 is also known as the K line chart of the screw steel 1601 contract at the same time. At the top of the graph, the highest price of 2489 yuan K line broke the high of the previous K line 2466 yuan. According to the method should be set at 2467 yuan.

  

  Figure 4: Screw steel breaks the previous day's high after rebounding its opening price

  But the problem is not so simple. If, after giving the signal, the dust settles, it is not necessary to say much. If, after breaking the previous day's high or low price, we repeatedly cross the opening price of the day in a short time, then we will fall into a situation of repeatedly opening positions to counter losses.

• Fiat four price short-line review

  The retracement of the short-line trading system, for the index, can only be done with its circumferential data sample. In the retracement detail question, when the opening price is within the K line of the previous week, the normal trading according to the FIAT price system. If the opening price appears to jump upward, it is purchased directly at the opening price.

• Understanding

  Prior to the build, the direction of the build is basically known. When the price is near the high of the previous day, prepare to build more. On the contrary, when the price is near the low of the previous day, prepare to build a gap. According to the method of stop loss position mentioned above, knowing where to build the build, should also know where to stop the loss. Assuming you have $100,000, and the principle is that you can only risk $2,000 if you do not lose 2% of your total capital per trade. If you place a position 24 points apart from your stop loss position, in ordinary commodity futures, you will lose $240 for every 10 points, or a one-handed contract. How many hands can $2,000 cover? 2000/240 = 8.33, so you can only place 8 hands. If you are more conservative, you can risk 1% of your total capital each time and make a four-handed contract. As long as one hour after the high is broken, the stop loss position follows the low price of the hourly K-line upwards, basically two hours after the high is broken, the stop loss position can be changed to the position, no more losses. Of course, there is also a subjective judgment here, if the upward momentum of the price is weak, the profit is less in a few hours, and the stop loss position has not changed to the stop loss position. Multiple systems can be used at the same time, for example, we use the FIAR four price system, which builds up the position, and the stop loss position also becomes a stop position, in other words, we have a profit, and after the stop order is hung, the profit has been locked. How many positions do you add? This is another problem. Basically, you also set a stop loss after you've placed a trade. The general principle is that the total stop loss after you've placed a trade cannot exceed your profit limit, which is that no matter how much you add, it should be within the limits of the money you make. For example, if you buy a lottery ticket worth 2 yuan a day, you never buy more, but you lose 5 yuan a day, you lose the cost, you gain 3 yuan. Then if you want to buy more that day, you can only buy one more bet, because the cost of this one bet is the money you earn, and you cannot exceed the limit of 2 yuan a day.

Translated from Hunan Sincerely Invested