Top traders buy rules

Larry WilliamsWilliam index creator, famous American futures traders, writers, column editors, and asset management managers. He once won the championship in the round robin hood cup futures trading championship, turning $10 thousand into $1.1 million in less than 12 months, and now works for the US National Futures council.

TIPS:
Larry. williams said in his book "The secrets of short-term transactions" that the system is the most trustworthy form of short-term transactions that he has studied and traded, many system developers include it in practical operations. In a sense, this is a psychological transaction system that measures excessive emotional reactions and leads to sudden changes in prices. The basic trend is that in a downward trend, the price fluctuates for 5 to 10 days in the vicinity of the Lower gear box, and then falls below the trend line, selling pressure is extremely high, if the next rebound to yesterday's lowest price, it indicates that the market energy is reversed, and another wave of intense growth is coming soon.

Mechanical rules for system purchase:
1. The closing price is 4% lower than the average price on the fifth day to ensure that the signal falls below;
2. The opening period is lower than yesterday's lowest price of 1%;
3. The close rebounded to the lowest price or above yesterday.

Victor sporrondiHe is a professional securities trader and fund manager. He was hailed by balun financial magazine as the "terminator of Wall Street" and has made investment profits for 12 consecutive years from 1978 to 1989, there is no impressive loss of any year.

Identifying trends and following trends is the pursuit of every technical analyst. Victor sporlidi simplifies the complex and arduous task of identifying trends to the 123 rule based on the Dow theory.

123 rule:
1. First, the trend line is broken;
2. the upward trend is no longer a new high, or the downward trend is no longer a new low (that is, only the early high and low points of action are tested );
3. In the downward trend, the price has exceeded the early rebound high point, or in the upward trend, the price has crossed the previous short-term rollback low.

Although the 123 rule is simple and effective, but its entry point is late, it usually misses a relatively large market, so Victor further proposed the 2B rule, the essence of which is to observe the phenomenon of false breakthroughs. The basic idea is: if the price has been low in innovation but has not been able to continue to fall, and the trend may be reversed if the market retries to rise more than the previous low.

Mechanical rules for system purchase:
1. The closing price is higher than the minimum closing price of a hundred days before the 10th day (Verification rebounded );
2. The minimum closing price for a hundred days is less than the minimum closing price for a hundred days before the 10th day (verification has been innovative ).

Tom demake, SAC Executive Vice President, bond fund manager van hosington CPO partner, $4 billion hedge fund manager Leon. crud Burman, a special consultant and one of the largest individual traders on the Chicago Stock Exchange. former partners of difransiská have served as consultants for major financial institutions including Soros, Morgan, Citibank, Goldman Sachs, IBM and Union Carbide.

Tom demakke has an innovative understanding of the deviation of technical indicators. readers who have a certain degree of securities analysis base know that the overbuy and oversell of indicators is an important factor in technical research and determination. However, Tom dimake believes that the key is not to overbuy or oversell, but to the time when the indicator runs during the overbuy period. In order to accurately measure the stock trading pressure, a method is proposed to create the TD demarker ⅱ index.

Associate all price movements with determined supply and demand levels. The molecular value is composed of two Buy pressure measurement standards. In the eight K-line charts, the difference between the highest point of the current day and the closing price of the previous day is added to the difference between the closing price of the current day and the lowest price of the current day. If the highest point of the day is lower than the closing price of the previous day, the Buy pressure part will be given a value of 0; the denominator is composed of the 8-day molecular value plus the respective selling pressure value. Selling pressure consists of two measurement standards. The first part is the difference between the closing price of the previous day and the lowest point of the day. If it is a negative value, the selling pressure is given to 0. The second part is the difference between the highest price of the day and the closing price of the day, add the two parts, and then add the obtained value to the molecular value to obtain the denominator.

The TD demarker ⅱ index evaluates the stock price movement from the perspectives of buying pressure and selling pressure, providing us with a new perspective, we constructed a TD price range Transaction System Based on its six days of operation in the superbuy zone. (The value of TD demarker ⅱ is greater than 60 in the overbought area ).

Martin plengeOne of the most influential leaders in today's field of technical analysis. He is currently the Director of the Springer Research Institute and the editor of the Market Comment magazine. He has won the Canadian Association of technical analysis Jack Frost commemorative medal.

System Thinking: when the price is at an extreme price, the reverse is on the fly. This idea can also be used in combination with transaction volume swing to verify the convergence effect of the two, and improve the odds calculation.

System mechanical purchase rules:
The ratio of the closing price of the day to the moving average on the 28 th, which is less than-10.

Constansi brown Jian, Securities analyst master, fund trader, chuangchuang iron investment website (www.aeroinvest.com), released an announcement every day to forecast the Dow Jones index, Standard & Poor's index, and bond market trend. Its accuracy is unmatched, he is the first person to judge and forecast the price target and market trend.

System idea: perform triple smoothing on the relative strength indicators of RSI. The calculation steps are as follows.
1. Calculate the RSI metrics for the 14th day;
2. Calculate the 5-day average of RSI indicators on the 14th day;
3. Calculate the 3-day average of the calculation result in step 1;
4. Calculate the difference between the calculation results in step 1 and step 2, which is indicated by a bar chart.

System mechanical purchase rules:
It is mainly used to find the extremely low value of the derivative oscillation index. The indicator value of the current day is higher than yesterday, and the indicator value of yesterday is the lowest in the Hundred Days.

Summary: The above transaction systems are all representative works of the world's top traders or analysts. Of course they are talking about them in the scope of public media. It can be seen that, except for the trading system "Fair, the other systems do not have the stable profit ability. The reason why we discuss them is to understand the concept and creation methods of the mechanical operation system, the real and effective mechanical operation system must be realized by yourself and put into practice. I am afraid it is difficult to find a shortcut.