How to increase the advantage of opening a position when trading?
The opening position determines the level of the winning rate, and the position squaring determines the size of the odds.
Opening a position sets the tone for the winning rate, that is to say, if you want to improve the winning rate, you have to rely on how to open a position? It is pointless to improve the winning rate through position squaring. Because of the symmetry of the transaction, the result is that the winning rate is increased and the odds are reduced. Overall profitability is the same as before.
Position squaring sets the tone for the odds. Improving the profit and loss ratio can only be pinned on, how to position squaring? The reason is the same.
Profitable trading systems are focused, some will pursue the opening winning rate, and some will pursue the position squaring odds.
How to improve the winning rate advantage of opening a position? For example, if you open a position in only one direction for a period of time, for example, if you only open more above the 60-day moving average, you will gain the advantage of opening a position after a period of trend.
How to improve the position squaring odds advantage? It is a small loss and a large profit. For example, there is a murderous trading method in the k line. That's why he said that opening a position is not important, and optimizing the processing of the list is the most important. He is the most typical position squaring odds advantage.
Both trading styles can make money. But they have different focuses, one ahead and one behind.
The trading system with the advantage of opening a position will be short at least half of the time. Use short positions to avoid unknown risks.
People are controversial about whether opening a position is important or position squaring is important. It is because he did not distinguish between these two trading styles. Looking at other people's opening methods from his own standpoint, the other party is a fool.
Can you put these two trading advantages in one trading system? I haven't seen anyone do this yet.
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Disclaimer: The content of this article does not represent the views of the Institute of Foreign Exchange. The content is for reference only and does not constitute investment advice. Investors operate accordingly at their own risk.