Why Can You Achieve Consistent Profitability?

why can youAchieve stable profitabilityWhat?Because your operations are consistent, and consistency comes from clear trading rules. These rules are what we call the trading system, so the trading system is the basis for achieving stable profits. What is a good trading system?

We can judge from the following four points:

First point: There needs to be a clear description, such as when the callback is in place and the market is entered, then what is the callback and whattimeIn place?

Second point：All elements of the system must be present and reasonable, including trend determination, entry point selection, entry signals, stop loss and profit, exit conditions, etc.

thirdPoints:The execution difficulty of the system should be small. For example, some systems have a very low winning rate, or there are very few trading signals, the conditions are too harsh, and the window of opportunity is very short. These will make the system difficult to execute.

The fourth point：The most important point is that your system must have positive expectations. Many systems are confusing and sound reasonable, but they fail when tested. For example, the famous Chaos Trading Method has a winning rate of onlyMore than 30%, there is still a lot of room for optimization。