Building a complete trading system is a complex process that requires a lot of study, research and practice on the part of investors. Specifically, it can be divided into the following steps:
1.Be clear about your trading goals
Before setting up a trading system, investors must first clarify their trading goals. Trading objectives can be divided into the following types:
Get consistent earnings.
Pursue high returns.
Invest for the long term.
Do ** speculation.
Different trading objectives have different requirements for the trading system. For example, if an investor wants to make a steady profit, then the trading system needs to have a high win rate and low risk;If investors want to pursue high returns, then the trading system needs to have high profitability, but it also needs to take a lot of risk.
2.Choose the right trading style
Trading styles can be divided into the following:
Trend following. Trade against the trend.
Swing trading. Different trading styles have different requirements for trading systems. For example, a trend-following trading system needs to capture the trend of the market, so it needs to use some trend indicators;A contrarian trading system needs to go against the trend, so it is necessary to use some counter-trend indicators;Swing trading systems need to capture the volatility of the market, so they need to use some volatility indicators.
3.Choose the right trading strategy
A trading strategy is a core part of a trading system. Trading strategies can be divided into the following:
Trading strategies based on technical analysis.
Trading strategies based on fundamental analysis.
Trading strategies based on quantitative analysis.
Different trading strategies have different features and advantages. Investors can choose the right trading strategy according to their trading goals, trading style, and risk tolerance.
4.Conduct backtesting tests
After choosing a trading strategy, investors need to backtest it to verify its effectiveness. Backtesting tests can help investors understand the winning rate, profitability, risk level, and more of a trading strategy.
5.Place a real trade
After passing the backtest test, the investor can make a real trade. Real trading can help investors test how their trading strategies perform in the real market.
6.Make optimization adjustments
In the process of real trading, investors need to optimize and adjust the trading system according to the actual situation. For example, trading parameters can be adjusted according to market conditions, or trading strategies can be adjusted based on trading results.
Here are some specific tips for setting up a trading system:
Don't blindly follow others. There are a lot of trading systems in the market, but not all of them are suitable for everyone. Investors should choose the right trading system according to their actual situation.
Pay attention to risk control. The effectiveness of a trading system does not mean that you will not lose money. Investors should set a reasonable stop loss to control the risk.
Keep learning and up-to-date. The market is constantly changing, and the trading system needs to be constantly updated. Investors should keep learning to adapt to market changes.
Building a complete trading system takes time and effort. Investors should be patient to learn and practice in order to finally build a set of trading systems that suit them.