When you find that your trading strategy cannot cope with the market, how can you improve your trading strategy?

Strategies fail for a variety of reasons.

We know that the fluctuation range of daily commodity prices will expand or shrink as the economic cycle changes.

For example, gold, HSI

The first thing to do is to review the failure of the original trading strategy, whether it is because of the problem of the setting of stop profit and stop loss, or the failure of the strategy itself.

If it is the former, it means that the strategy itself is effective, and only need to adjust the stop-loss spread, expand or shrink.

If the latter, then the strategy itself has its drawbacks.

Next you do a detailed review of the strategy.

Ask yourself a few questions:

1. The failure of new varieties, or the failure of original trading varieties

If the new variety fails, the transaction result of the original variety is still normal. Then the variety characteristics of the new variety are not suitable for this kind of trading strategy. You have to think about it, should you make appropriate adjustments to the varieties, or give up new varieties, and still have varieties traded forever?

If the crude oil variety fails, there is no need to rush to deny the trading strategy. Review the trend of the recent variety, define the trend structure of the variety according to the "Wave Theory", and then correspond to your own strategy to determine whether the strategy cannot implement this type of candle structure. If so, you must supplement the original strategy or Re-statistical strategy, finely divided to clarify a certain type of candle structure that the strategy applies to.

2. The original strategy must be overturned

This kind of situation is an inevitable and painful process for traders. I got up early and overthrew many trading systems. I was panicked after being lost, and finally became more and more frustrated. Soberly realize that the transformation of thinking is the most critical. Strategies must be refined, efficient, reproducible, and less analytical.

Doing a firm offer is not an analysis, and a long speech is a taboo. The more processes considered in the analysis, the higher the failure rate of the order. Why? The market is ruthless. If you participate in too much analysis when making a trading plan, you must add a lot of personal subjective views. Knowledge will easily reduce the success rate of the strategy. This is the most essential difference between analysts and traders.

For traders, one sentence can solve or avoid many methods that do not require thinking but can increase profitability. And analysts can say a lot of ideas, but they lack solutions that can solve profitability.

Therefore, trading strategies are not a game of words. Refined, simple, less analysis, and reproducible, a trading strategy with these four points is half the success.

You look back at your trading system, is it too complicated? Use more than 3 reference cycle charts, draw more than 3 lines, and take more than 10 minutes for the next transaction order? If so, then your strategy will not be used for a long time, and will still be eliminated by the market sometime in the future.

3. How to rebuild the trading system

Reverse thinking is the most critical.

• l Deduce the cause from the result

• l give up before gaining

• l Be patient first, then seek profit

• l Multiple reviews, perfect and perfect

If you can meet the above four points in your understanding of trading, then you are a big step closer to a successful trading strategy.

3.1 Naked K

At this point, let’s go back to the origin: Naked K.

From naked K, to candle combination, and then to candle form. The relationship and connection between these three must be clear. Comprehensively summarize the respective characteristics of these three, I am talking about comprehensively summarized characteristics, not those long-winded essays written in books, you have to know the core usage points of naked K, the core usage points of candle combinations, and the candle shape at a glance. Key usage points. Don't talk about morning star, hanging man, gestating line, rising flag, head and shoulders... Such useless classifiers, you must clearly recognize from the beginning to the end that you are not lecturing, you are making money for firm offers, It's nice to say but it can't tell the truth of the K-line, so it's useless. If you can't grasp the core usage points of these three, I suggest you concentrate on reading "Wave Theory" several times. Naked K skills are the foundation of your firm offer. Many analysts can't become traders because their bare K skills are too poor.

Analysts can only go up or down. For a firm offer, it is necessary to set a reasonable entry and exit point, position placement, capital use, and flexible exit strategy. useless.

3.2 1 or 2 species

You have been trading for a while, choose the variety, or a category of varieties, that you want to do most.

Forex market: straight, cross

Precious Metals: Gold, Silver, Copper

Energy: crude oil, natural gas

Stock Index: Hang Seng Index, Dow, Nasdaq, S&P, A50

Choose 1-2 of them. You have to do it first, let yourself have the most familiar variety in your hand, and use this as the basis to build a trading strategy. This variety is the foundation for you to make money in the future. Even if other varieties do not apply, you have continuous capital gains.

3.3 Reproducible is the rarest

Trading strategies are reproducible. A large number of review and simulated warehouse inspections are the most effective methods. If you think that the simulated warehouse is useless, it means that your own mentality is immature, and the trading attitude determines everything.

Breakthrough in the market, sell high and buy low, martingale, top-bottom divergence, overbought and oversold, etc. Any trading method needs to be improved and adjusted, and it must not be bookish. Review and practice are ways to combine theory with practice.

You will find that among the many trading methods today, these four trading methods have been widely used. However, neither will inform the public of their respective improved methods. Therefore, making good use of these four basic trading theories, combined with your own situation, and improving it into your own trading strategy is enough to create wealth for yourself.