In foreign exchange trading, what risk control methods do you have to minimize the withdrawal of funds?

Make orders with even hands, strictly stop losses, and determine the risk-to-report ratio.

If the direction is wrong, stop the loss decisively, and if the direction is right, lock in the profit.

This is a good question. I have been doing foreign exchange for 12 years and I can't solve it.

Because as long as the order is placed by yourself, according to human nature, there is no way to stop the loss decisively. Setting a stop loss when placing an order does not change the problem of losing money. I have stopped losses 12 times in a row, but my position was still liquidated.

So I now use physical means to solve this problem. I don’t operate the order myself, so I ask my wife to help me. If I make a mistake, I will ask her or me to stop the loss. You can try it. First, it can avoid excessive orders. Second, when the stop loss seems to stop The list of harming others is clean and tidy.

How to avoid withdrawal of funds? This problem, the longer the transaction time, the more important it is.

I would like to take the trend trading I am familiar with as an example. There are two rules for the withdrawal of funds (set by myself):

1. After the trend is profitable, leave the market for a period of time (the amount of time depends on the attributes of the trading variety);

2. Lost three orders in a row and left the market for 3 days.

Both of these points are related to time: the first point allows me to avoid the shock and wear after the trend ends; the second point allows me to maintain my mentality and leave the market that is not suitable for the system.

It's a very simple rule, but don't underestimate its role. Of course, this is just for me. Everyone has to work hard to find a method that suits them. Sometimes, the protection stage after profit is more important than pure profit.

It is a good wish to exchange for big profits by reducing the retracement, but it is actually impossible, absolutely impossible!

Foreign exchange trading itself has the ability to increase the utilization rate of funds through leverage. When funds are magnified, relative risks are magnified.

The methods to reduce the drawdown include but are not limited to reducing the frequency of transactions, reducing the number of open positions, reducing the leverage of the account, etc., but after you operate in this way, the net profit margin will drop. If you want high profits, you need to increase your position and leverage.

There is a way to really fight big with a small amount. You can split a thousand dollars into 10 accounts of 100 dollars. In this way, you can have 10 trading opportunities. Make good use of these ten opportunities to carry out heavy positions. In the way of warehouse, if you look at the unilateral market once, you can double the profit of the account. This kind of trading strategy requires veterans to do it, and they must have a strong enough psychological endurance to use every liquidation to exchange for a high amount. profit.

Profit and loss come from the same source, profit and retracement are twin brothers, without retracement, how can profit come from?

Those who dream of low retracement and high returns will be wiped out by this market sooner or later.

Reasonable trading should be emphasized, and a reasonable retracement corresponds to a reasonable profit.

If the drawdown is minimized, no matter what method is used, the corresponding profit will be gone.

Only by matching the retracement with the income can there be research value. For example, the maximum retracement is 20%, and the annualized income is 40%. This is a very good profit-loss ratio.

Opening the compound interest fund management mode can minimize the risk of the account. If the entry and exit strategy can be profitable and strictly implemented, the position can never be liquidated.

1. Bring a stop loss for each transaction, and calculate the stop loss points, such as 100 small points

2. Set the stop loss percentage of the total amount of the account for each transaction, for example, the loss percentage of each 10000 account is 1%

3. Calculate the number of lots to open a single position. For example, if you hold an account of 10,000, calculate according to condition 2 (10000×1%=100). The stop loss amount of your single position opening is 100 US dollars, and then according to the requirements of condition 1. Calculate (100/100=1) you can only open 1 lot for this transaction.

If your account has a withdrawal loss and the balance is only 9900 US dollars, then your open position needs to be recalculated. According to the calculation according to condition 2 (9900×1%=99), your single position opening stop loss amount becomes It is 99 US dollars, and then calculated according to the requirements of condition 1 (99/100=0.99), you can only open 0.99 lots for this transaction.

If your account is profitable, when the balance is 11,000 US dollars, it is calculated according to condition 2 (11000×1%=110) and then calculated according to the requirements of condition 1 (1100/100=1.1). The number of open positions is 1.1 lots

If the risk control account is controlled according to this compound interest asset management method, the purpose of minimizing the risk can be achieved

Light position, with stop loss.

Remember a truth: no loss is gain.

Profit also has losses, and capital loss is also a university question.

I can share with you a trading formula to help you minimize the withdrawal of funds.

• Trading formula 1. Weak warehouses take advantage of the trend to retrace, disperse and resonate in batches

① Light position: Kelly formula, f=pq/b<p

② Take advantage of the trend: high winning rate, follow the general trend, follow the small trend

③ Retracement: high odds

④ Dispersion: Multiple varieties

⑤ Batch: multiple batches

⑥ Resonance: multi-cycle

• Trading formula 2. Potential energy = trend + volume energy = cycle resonance + (N word retracement + moving average trend) + volume energy Fund = time + price + volume

• Trading formula 3. Do small things in small markets, make big things in big markets

① Multi-period trends are contradictory, there is no consensus, there is little joint effort, and active stop profit

② Multi-period trend resonance, consensus, joint efforts, mobile stop profit

Fund management is the most important thing in a trading system. Before a complete fund management system is formed, it is not recommended to use real money to try and make mistakes.

Minimizing the retracement of funds, from another perspective, means that the retracement of funds is under one's own control.

A good deal is not about knowing how much you will make, but knowing how much you will lose the most.

Therefore, before making every transaction, make a capital plan and control losses.