Plunge and touch the bottom a beautiful mistake!
Generally speak cashback forexg, the cashbackforexpipcalculator cashback forex profit calculator oscillating more of the time, forexcashbackprofitcalculator less of the time is trendy, but a few of the profits of the trend market, can make up for the losses of the oscillating market, which is a confusing place because the history of human development there is a good to summarize and look for patterns of characteristics deeply rooted in human nature, this excellent human summary ability to create the current glory of mankind, which is also we are different from other animals One of the most important reasons but this summary and looking for the law of human merit, in the world of trading is fatal if only with the naked eye, many people cashbackforexprofitcalculator find that the vast majority of the market is the oscillating market, and high throw low suction operation than the trend tracking operation is more psychologically acceptable, but also in line with the laws of the real world, after all, a business to profit, you need to be able to repeatedly buy low and sell high, rather than repeatedly buy high and sell low. The newbie trader unconsciously adopts this way of trading and the oscillating market happens to be the more frequent market, people initially trade in this way and generally taste some sweetness, this wrong feedback experience makes people feel as if they have found the holy grail of trading but, the market will not always be oscillating, just as the market will not always be trending If you sell short at a high, the market will keep going up and there is no opportunity for you to cover the low, you will be trapped and then there will be two situations, in the vast majority of cases, the market will eventually fall down to let you keep your capital or even profit, the other situation is that the market will never return to the position you opened If you are really lucky, the market has repeatedly given you the opportunity to preserve capital and make money, but this luck does not allow you to avoid failure, because this experience will not allow you to learn a lesson, but to allow you to get another experience of mistakes reinforced, because in your consciousness unconsciously will think that as long as the luck This kind of thinking and fluke makes you repeatedly operate in this way, but there will always be a price movement in the market that will prevent you from closing your position, although this is not common, but as long as once, you will be eliminated from the market from another point of view, the financial market quotes show a typical thick-tailed, thick-tailed typical feature is that in most cases This market structure gives traders an illusion that many people believe from the surface or subconscious that the market is randomly distributed, from an intuitive feeling and driven by human nature to induce people to buy low and sell high - that is, to copy The top of the bottom of the bottom of the bottom of the trading pattern, in line with human nature, and from the surface also in line with the market "law", and has a high success rate, as opposed to trend following transactions, this bottom of the top of the trading method success rate can reach 80% or even 90% or more, but in the end it is difficult to escape the fate of failure for a very simple reason, because the higher The success rate is obtained by sacrificing the profit/loss ratio, the bottoming out of the newbies will be in the profit of 2% on the profit closed, but in the case of 2% loss is not willing to cut off the loss, let the expansion of the loss, so that a loss amount to expand to more than 5 or even 10 profit amount, some people will even be forced to close the position until the most essential reason is that many traders make a huge mistake, that In fact, the correct trading method - trend tracking method is more focused on the profit-loss ratio, not the win rate In addition, the transaction record is a very important thing, I do not know whether many traders have paid attention to their delivery orders, perhaps because too much attention to the results of a single transaction, many traders If you want to know more about your own trading behavior, my suggestion is that you start today to count your own trading records and analyze them. If you are a trend trader, then you should focus on whether your P/L ratio is above 1:1; if you are a counter-trend (oscillator) trader, then you should focus on your P/L ratio. However, no matter what type of trader you are, one of the core issues you need to understand is that the product of the win rate and the P/L ratio must be greater than 1, otherwise, you cant use any money management or disc sense metaphysics to make profits. So, should I use a trend following strategy or an oscillator strategy? There is no standard answer to this question, but I personally believe that the domestic financial market should be dominated by trend following strategies, and a quantitative investor should also start with trend following strategies when developing strategies, because any kind of mean reversion strategy is not enough to run as a stand-alone strategy, it can at most be an auxiliary strategy to modify the capital curve to run with trend following strategies. But it does not mean that the oscillator strategy is a completely meaningless strategy and the trend following strategy, in contrast, the oscillator strategy usually has a higher win rate to get an edge at the expense of the P/L ratio, this distribution results in the oscillator strategy as a single strategy against risk is far less than the trend following strategy, because the oscillator strategy cannot compensate for losses with larger profits, the P/L ratio of many oscillator strategies is I found two phenomena in testing more oscillator strategies, one is that there are very few profitable oscillator strategies in the first place; second is that the risk of oscillator strategies is more difficult to control than trend following strategies except for high frequency strategies, certain high frequency strategies are based on this idea: because trend traders will chase up and buy at a sensitive position, assuming $10.00 is a key price level, certain strategies will In the price of 9.90 sweep single buy, prompting the price to move to 10.00 near, and then backhand the price at 10.00 will be sold to the trend trackers profit, the logic of this high-frequency strategy is that as long as the trend tracking strategy has been effective, this strategy will be more stable profit but this strategy has the suspicion of market manipulation, and international and domestic have been cracking down on this logic of high-frequency trading, we will not discuss it in depth here.