Total position control in foreign exchange transactions

In total position control, positions that have already made profits and locked in positions with zero risk are not included.


　　1Trading with the trend


Whether or not to gain greater returns on the basis of risk control in opportunistic trading depends on the situation of position control: while maintaining liquidity in some positions, it is also necessary to always maintain positions that are in line with market trends.
We divide positions into three types: light position, medium position, and heavy position. Therefore, in favorable trading, we can retain the medium position as a position that conforms to market trends, and other positions as liquidity positions. The specific division can be adjusted according to individual preferences. Those who value short-term operations can increase their liquidity positions, while those who value medium-term operations can reduce their liquidity positions.
For the distinction between light, medium, and heavy positions, personalized settings can be made based on the size of one's own funds and risk preferences.
For example: light warehouse5%Middle warehouse8%, heavy warehouse10%(Occupation of margin ratio)If the amount of funds is too small to be subdivided in this way, then all will be used1Single transaction.


　　2Countertrend trading


Position control is more important in counter trend trading, as its purpose is to reduce operational risk, as the success rate of counter trend trading will decrease no matter how much. In counter trend trading, it is essential to maintain sufficient liquidity of capital to avoid situations of being trapped.
We divide positions into three types: light position, medium position, and heavy position. Therefore, in counter trend trading, in most cases, only light position operations can be adopted. For mature and highly successful trading rules, positions can be appropriately expanded to medium position; In counter trend trading, there is no opportunity for heavy position operations unless there is a clear reversal of direction.
The distinction between light, medium, and heavy positions can be personalized based on one's own fund size and risk preference.
For example: light warehouse2%Middle warehouse5%(Occupation of margin ratio)If the amount of funds is too small to be subdivided in this way, then all will be used1Single transaction.


　　3Horizontal trading


The position control in the consolidation market is relatively strict. Before the consolidation area is broken through, heavy position operations are not allowed. After the breakthrough, the position can be gradually increased.
We divide positions into three types: light position, medium position, and heavy position. Therefore, in consolidation trading, it is recommended to use light position operations before breaking through the consolidation area, and not increase positions before breaking through; After the breakthrough, the position can be increased to the middle position and a new unilateral trend can be determined. Follow the key points of the unilateral trend to operate.
For the distinction between light, medium, and heavy positions, personalized settings can be made based on the size of one's own funds and risk preferences.
For example: light warehouse2%Middle warehouse5%, heavy warehouse8%(Occupation of margin ratio)If the amount of funds is too small to be subdivided in this way, then all will be used1Single transaction.