After achieving stable profits for several years, what are the biggest obstacles or points that you need to break through in your current trading?

Thank you sga for the invitation. Trading is actually a field that has a starting point but is not easy to have an end point. As for the profit for a few years, it is actually nothing. A qualified trader must always tighten the string of risk.

If we have to talk about a bottleneck period that may be encountered for many years of profitability, I think it may be a sudden loss. Everyone has emotions, and everyone can't bear losses, especially after making profits for a long time, suddenly there is a period of losses or profit taking. I think this is also the biggest test for a trader.

I myself have encountered a retracement period of up to seven months. I am now focusing on futures, so I prefer to refer to the amount of funds as equity. After my equity broke through a new high, a period of not long and not short winter came. , After this new high, there has been no new high for seven months, and the equity curve has been zigzagging downward during this period.

I understand in my heart that this is the result of the market not being suitable for my trading system. My own system is a trend trading system. The curve should be downward, but after all, it is really uncomfortable when it has been retracement.

At the beginning of the three-month retracement, I was okay. Although it was uncomfortable, I could still bear it. But when the retracement was five months old, my emotions began to become unstable. I even wondered if this time it would really fluctuate. To death? Do I need to make a change? Or should I stop trading now? So I started to use my advantage of writing statements to start backtesting historical data crazily to see if the worst time in history would be worse than this time.

The backtesting function of Wenhua Finance wh8 is very good. It can count all kinds of statistical data. The value of the maximum retracement and the time period of occurrence can all be clearly displayed. The result of the backtest is that in the last ten years, my combination of varieties and the system will not reach new highs for as long as ten months. When I backtested these data, my real equity had not reached a new high for nearly six months. This backtest result gave me both comfort and panic. The comfort is that I have not yet reached the harshest winter. What about the harsh winter?

Doing anything may encounter bottlenecks, and the bottleneck of my trading this time is that I have a strong anxiety about continuous retracements. But once you break through the bottleneck, you will enter a new world. The biggest feeling I realized during this bottleneck is that "winning against loss" can be said to be the core of a transaction. In fact, I did not do very well in terms of profit, loss and contraction. Of course, there are subjective reasons and objective reasons for this. The objective reason is mainly because the margin of domestic futures is relatively high. A large amount of funds, if the amount of funds is small, it is easy to talk about winning, but for losing and shrinking, at least one hand is required. Once there are too many varieties, there is no way to shrink.

So I thought about this issue for a long time, and finally I made a decision to reduce the trading variety when the equity retraces by 30%. This is the biggest choice I can make in terms of loss and shrinkage. In a random way, whichever one comes out first will not open that variety directly. Because the future market cannot be predicted, I can only randomly reduce it to the variety. Fortunately, my trading started to pick up after the retracement to 27%. After seven months, it reached a new high again, and there was nothing that made me want to be caught. The situation of forced reduction of species.

I said at the beginning of the article that it is actually nothing to be profitable for a few years. This is the reason, because the future is uncertain and anything can happen. Prepare for the worst at all times and stick to it. If you have been trading If we stay in the market, the terrible market or data we have seen before will definitely strike again at some point and even be more powerful, so it is not important to laugh now, it is important to laugh until the end.

Are you satisfied with this answer?