Mr. Engineer工程先生
Mr. Engineer工程先生

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【Investment and Financial Management】Trend Trading - Review Trend Trading

The photo above is the performance I got using the breakout strategy from the end of 2018 to the beginning of 2019. Overall, the winning rate is very poor. The black part is the profit part, the red part is the loss part, and the model of the strategy is Looking for stocks that have made new highs in a year is the so-called breakthrough strategy, and then strictly adhere to the two principles of stop loss and letting profits run.

Below I will put a picture of the buy point, that is, the stop loss point. In principle, the stop profit point has been changing, and it is not easy to express, so the stop loss follow-up market is shown.

The strategy also includes overweight, so you can see different buying dates on the statement, as well as the part of exit in batches. You can also see on the statement that the buying and selling points are divided into many, and the overall is the entry and exit. A breakout trend strategy with a high number of sessions.

strategic operation experience

The teachers of traditional technical analysis will tell you not to care about the winning percentage, the profit-to-loss ratio is what a trading winner should do. In fact, there is a long section in the front of this statement. I can also tell you that the summary It makes money, but it doesn’t make much money, and I feel very uncomfortable, because there will be consecutive losses, even if you tell yourself that it is normal, it will not feel very good.

The most important thing in trading is to fight against myself, but in this situation, I ask myself, is this really the trading situation I want? Don't you think it's too inefficient? Buying and selling hundreds of times a year will only make a little bit of money. Many people say that they want to be trending. Have you ever thought about how difficult it is to grasp the trend?

The general situation of trading last year was as follows: two or three stocks entered the market every day, the holding period was uncertain, some were very short, some were very long. Those who make money will take longer, and those who lose money will be out the next day.

The most annoying thing about encountering stocks that consolidate and end up going down is that the breakthrough strategy has a very annoying point, that is, everyone knows where your stop loss is, so it is the low point of red K. Very, very easy to wash off, otherwise you wouldn't see so many red letters.

Can a breakout strategy work? Yes, as long as you suffer from an inefficient profit model.

The status of the profit segment

The two stocks that made the most profit during this period were Lituan and Lishan. The breakthrough strategy also has a disadvantage, that is, it is absolutely impossible to make more money than lose without overweight. A fixed amount, no overweight when it goes up, only mobile stop-profit, those who are interested can try it out, in principle it won’t make money, breakout strategy won’t work, unless you have a very high winning rate, if so, ask for advice I.

The line shape of these two gears is very exciting. After the red rod breaks through, it attacks directly and continuously, which is a very rare state. In fact, look carefully. There are many such stocks in one year, but we should really study statistics. As long as the stocks with such stocks are divided by the number of all stocks, the probability is extremely low, and it is difficult to catch them. Not only It's hard to catch, it's hard to catch. But it's still good to congratulate, it's better to catch it than not to catch it.

Condition of the loss portion

There are not many obvious situations of loss, one of which is to be washed and stop loss, because the stop loss point is too obvious.

For traditional technical analysts, the low point of the red K is the stop loss point of traditional technical analysis. The funny thing is that there are still people in the current course hyping this kind of stop loss method. It’s not that you don’t need to set a stop loss. It’s good to have a stop loss. It’s just that the road is one foot higher and the magic is one foot higher. After others know your stop loss, they can attack you. This phenomenon has existed for a long time, but if more and more People will avoid this, and I don't know how that demon will evolve. In short, I advise you not to buy and break through.

Let’s take a look at a few targets that were bought last year. This one is Lishan. The red arrow is the buy point and the green line is the stop loss point. You can see that this is a very rare line type. I used to dream of catching it every day. This stock, however, should be quicker to daydream.

This famous line was bought with a long red K on the day of purchase. The next day it was obvious that the long red K had to be washed. After seeing that it went up for a short period of time, if you have bought it, you must go back and look at it, you will know what happened. What a strange phenomenon.

This is Elan, and this is even more irritating. He didn't buy the last one, but the flashback is only a little bit. He is a big big one, but this is not buying Changhong.

Longbang, there is no return to light, and the characteristic is that the trading volume is usually very low.

The last thing to watch is to be happy. 5G concept stocks are standing tall. This kind of line is really hard to come by. I don’t know how many stocks to stop and lose in the middle, but it’s better than nothing.

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