The advanced realm of fund management

There are many people discussing trading systems, and there are many strategies for trading systems that represent different win rates and break even ratios. For example, there are band strategies, ultra short strategies, random strategies, hedging strategies, median strategies, etc. Each strategy can have different gameplay.

In fact, different strategies, or trading systems, all have people who can make money as long as your profit to loss ratio is greater than1Can have a certain winning rate, for example50%The winning rate is sufficient. But most people have been desperately seeking the Holy Grail for many years, not even touching the door of the Holy Grail. They overlooked the core of stable profitability, which is the fund management that has been talked about countless times by countless masters.
Choose any profit and loss ratio greater than2：1The winning rate is greater than40%With a trading strategy and a suitable fund management system, you will be at the door of stable profitability.
What is fund management, and what is the essence and essence of fund management?
The essence of fund management is that when you place orders according to your trading system, when the market develops in a direction that is favorable to your order, especially when a large market appears, it can cause your funds to rapidly expand, and you will feel the pleasure of sitting on a rocket. And when the market develops in a direction that is unfavorable to you. It can allow you to limit your losses to a very small range, so that even if you suffer dozens of consecutive blows (of course not, otherwise your trading system will have problems)),The impact on your funds can also be negligible. When unexpected developments occur in the market, it prompts you to reduce your position and lower your profit expectations. Let your potential losses possibly decrease to0Or very small.
How to implement such a strategy? The answer is to build positions in batches, protect existing profits with stop losses when the market breaks free from costs, moderately increase positions at the next level of position building when the market meets expectations, moderately reduce positions when the market is unexpected, close positions when there are signs of a turnaround in the market, and consider opening reverse positions and implementing a new round of continuous combat plans. If this strategy is successfully implemented, even if the margin utilization rate is as high as100%For you, the risks are all0. If the market trends out, it is common for funds to double in a day.
A true expert relies on adding and reducing positions to deploy their combat plans and achieve great success. Especially infuturesMarket, this strategy can make you laugh in your dreams. of courseforeign exchangeThe gameplay of futures is different, and the trend cycle of futures is relatively long, mostly several months or even years. We just need to grasp each band of foreign exchange. When the market doesn't even have a band, we can switch to a volatile strategy and continue playing, corresponding to a fund management that conforms to the characteristics of volatilityOKThe market situation of foreign exchange is always constantly changing, and this trend will not last too long. Mainly based on the frequency band.
Fund management is much more important than trading systems, which is the core of ensuring that you have small losses and large profits. As long as the profit and loss ratio is greater than1The winning rate is not too low, and with the help of the fund management system, you will have no choice but to be at a disadvantage.