Trading System Featured---

Trading System Featured---(2011-03-08 12:52:03) reproduced

The analysis of the applicability of securities investment theory and securities investment strategy, the principle of computerized technology analysis of securities and futures investment, and the three works of Dr. Waves, "system trading Method".

John Murphy's "futures market Technical Analysis" has an electronic version and book version is I explore technical analysis of the guide, and the waves of "system trading method" directly inspired me to establish and improve the trading system, trading ideas have a qualitative change, trading results have a fundamental change. I am thankful that the writings of the two authors have important implications for themselves at the critical moment.

The book, written by Dr. Waves, may be the only one in the country that deals with the system trading method in detail, from the establishment of the trading system, the basic structure to the test method, and then to the optimization and noise control, and finally discusses the post-maintenance of the trading system. The science profession, deserves to be the doctor's work. The only regret is that the author failed to disclose the actual contents of the war trading system.
　

Q: What is a trading system like?
A: The trading system is the assembly of the trading rules system. There are two basic types of trading systems: one is purely technical trading systems, and most commercial trading systems fall into this category. The skeleton of this trading system is a mathematical formula, the other is the integrated system of trading system, it is the investment philosophy, investment strategy and the integration of specific trading methods. It takes the philosophy of investment as the soul, the investment strategy as the guide, the trading rules as the basis. The book's author argues that the second type of trading system can really withstand the long-term practical test.

Q: How can investors open their own trading system?
A: It's hard to say. It's like asking a person how to become a martial arts master. This depends not only on whether a person is willing to work hard, but also on the perception of a person.

Q: How can investors make money in the market?
A: It is essential to establish a workable trading system.

Q: What is the charm of investment (machine)?

A: The futures market is a very attractive market, the margin system gives people a lot of opportunities for small broad. It can make people get huge profits. Indeed, futures can make people rich.

Q: Why are there fewer people who invest in profit and more people who lose?
A: In the commodity spot market, if the purchase and sale of the two sides reached a deal, is generally "win---win" type of win-winning results, and in the futures market, futures contracts trading is "win---negative" type results, therefore, in any case there must be some investors will be in the passive situation of loss. If investors want to become a long-term, stable winner in the market, they must establish the principle of investment that is in line with the conditions.

Q: What are the uncertainties in the investment (machine)?
A: price fluctuation; investors ' own instability.

Q: What problems does the trading system have to solve?
A: price fluctuation; investors ' own instability.

Q: What is the goal of psychological control?
A: Mechanical, firm, 100%, no-compromise, execute every instruction issued by the trading system.  

Q: The first rule of survival?
A: The first time unconditional stop, and must always adhere to not be lucky.

Q: Why not re-position or full position?
A: Margin regulation is the freedom that futures markets give to investors. This free choice of authority leads to the most direct and fullest exposure of human nature, and people always have a strong tendency to use sufficient margin. Futures are not ordinary financial instruments, their leverage is like "nuclear finance", the common practice: full warehouse into full position out. There is an analogy can be explained: The car on the highway, if the speed of 120 yards is safe and comfortable, then each increase of 10 yards, the probability of the accident will appear exponentially higher, when the speed of more than 220 yards, regardless of the driving technology, the likelihood of accidents increased to 100%.

Q: Why do I need a light position?
A: In the actual transaction, should establish "safety first, profit second" thought, can say, the fund management status is the trader's inner world concentrated reflection. Good money management helps investors to maintain a harmonious relationship with the market, helping traders to make the most of their level, and helping to improve the quality of the transaction rather than the quantity. The money in the market is endless, but your money can be lost.

Q: Do you hear the news?
Answer: No! Prices reflect everything. One of our core philosophies is "no forecasts on price movements". We only respond to price changes. We abide by the principle of trading, what the system says we will do.

Q: Are there any trading systems that can make money?
Answer: Yes! The most famous trading system is undoubtedly the "turtle trading system". In 1983, the experiment of Richard Dennis, a famous commodity speculator, confirmed that Wall Street was not completely monopolized by geniuses and that anyone with normal intelligence could be a winner, provided that you had a workable trading system. I studied the turtle system, which is really very simple, and it's basically some basic rules. Dennis claims that his trading system can be made public to anyone, but in reality there must be very few people who can really be strictly enforced, because these rules are so simple that many traders who follow the "winner Cheats" are dismissive. But a person who understands the essence of trading must feel the same, in fact, the principle of investment success is very simple

Q: Why do most people lose money?
A: 1, because most people lack statistical training in strict sense, it is difficult to observe the problem with statistical rules. 2, no person on the basis of statistics to establish a trading system.

life hangs in the speculation. This is my choice, regardless of success or not, this road I will always go down.

This passage is the exact words of the Book of waves: The process of developing a trading system is much like the practice of a monk. Only after many years of painstaking training, and then can sublimate the "relic son." Here need two "practice (refining)" word, indispensable. So the crux lies in "enlightenment".
It is not difficult to imagine that developing good trading systems, such as those of some truly successful people, is actually equivalent to those of other industries.

"Listen to the destiny, do the personnel"---if profits do not have to rush to drop bags for Ann, and should let the market fluctuations, give up a bo. This single end can have much profit by the market decision, this is "Listen to the Destiny", if there is a loss must limit him to a certain extent, the risk must be self-control, should not be at the mercy of the market. This is "doing the best".

    Identify trends The most common method is to develop a standard line. Above the standard line is a rise, below the standard line is considered a fall.
    As for the standard line how to make, a person a train of thought. A moving average is one of the simplest and most common.
Trend Method Puzzle:
    How to face the noise signal. The so-called noise is the signal that after the signal is sent, it is proved to be the failure signal afterwards. In fact, it is called noise is not suitable. The signal of success is hidden in the noise signal, in advance no one knows (nor intends to know, this is the core idea of the trend method) whether the signal is true or false. All are treated according to the correct signal.
    failed signals are bound to incur losses. The trend method hopes to recover the loss of n consecutive failed signals by the return of 1 successful signals.
    The Book of the Waves, published near 1997, I heard is quite a lot, has not seen, it is really interesting to look down. I have asserted that the book about stocks must not be read by the people of Taiwan! But this time with an exception, this is the "system trading method". I think this 10 years may not exceed this book, it is a pity that I once soaked in the Guangzhou library for three months, but can not touch the book beyond it. A book 10 years ago, experience the test of time, rare.
Having a familiar, self-suited trading system is a very extravagant and difficult thing to do, requiring patience, courage, perseverance, confidence, and luck. But this is a way to realize your own trading philosophy and realize your dream.
    The so-called system trading method, refers to the trader using the trading system to help solve the transaction process of information collection, processing, trading decisions, trading plans, transaction execution and other issues of a systematic trading method.

System Trading method is a kind of risk-based decision
The system trading method has the characteristics of pure technical analysis, objectivity, quantity, mechanization, procedure, institutionalization of capital management, institutionalization of risk control, systematization and consistency.
Using the system trading method makes the transaction decision-making activity systematic and consistent, which is of fundamental significance for the trader to achieve long-term stable profit. If a trader uses a system trading method for trading decision-making activities, then each trade order issued by the system has a relatively stable winning probability and expected return rate. In this way, although the trading system issued by the trading order only has a profit probability, the trading system does not guarantee that every trade order can be profitable, but we know the probability distribution of the obtained interest rate of each trade order, which makes the trading decision under the guidance of the system trading method become a risk-oriented decision.

(1), the transaction system is complete and objective, it must be through long-term statistics and practice, prove that it can be a stable profit. The system trading method belongs to the scientific type of investment transaction method.

(2), trading system is a complete system of trading rules. It must make a clear provision for all relevant aspects of investment decision-making. Such a provision must be objective, unique and not allow for any different interpretation.
(3), the trading system is characterized by its integrity. Both the decision-making points in a complete trading cycle, including entry points, exit points, re-entry points, and then exit points are clearly specified, thus forming a complete decision chain.
(4), a non-watching and avoidance of the trading system is not a perfect trading system. An excellent trading system that does not limit profits, only limits losses. System trading emphasizes the long-term stability of the overall gains, rather than emphasizing the gains and losses of a single place.

In the speculative market for a long time to occupy a probabilistic advantage, rather than desperate, successful traders just consider each transaction as a series of probabilities and probabilities, due to the uneven distribution of statistical samples, the occurrence of adverse events and cluster, any trading system must face a continuous failure period. In this period of adversity, it is of vital importance to maintain psychological balance in the face of adversity when facing strong psychological pressure and deeply understanding the investment idea on which the trading system is based.

When the transaction adopts the absolute objective decision-making mode, the human factor is completely excluded from the signal occurrence process. It is this characteristic, so that the system trading method can effectively eliminate the subjective will, and personal emotions on the process of signal interference, so that the system has a high degree of operational stability, and the ability to resist catastrophic failure.

A good trading system is a long-term stable and profitable system, which is complete, coherent and consistent; poor trading systems are incomplete, intermittent, contradictory, and their trading behavior is messy, and there is no link between the transaction and the previous transaction. The entire trading process looks east one hammer West a wooden club, thus cannot profit stably.

When a transaction generates considerable profit, it is also the most likely time for investors to have a psychological shake. At this time, investors tend to have a strong desire to close the position, rather than wait for the trading system to give out the signal, but overall, the total objective of the system to close the position is far superior to the individual subjective decision of the close point. The system can help investors to overcome the psychological shake, adhere to the existing positions without being a strong market volatility out, until a greater profit.

The biggest enemy in trading is not the market but the trader itself, each of our experiences of failure shows that the market is not too clever, but we are too smart, too self-righteous, we are always in the trade by their own subjective emotions, desire to beat. In order to avoid being disturbed by our subjective emotions, we must use a mechanical trading system to regulate our trading activities.

Operation with the system is

Trading System Featured---