Mistakes 80% of People Make When Building a Trading System

80% of people who build trading systems will make this mistake, that is, based on past trading experience and profitable orders, look for patterns on the market. Why is this approach wrong? Because you reinvent the wheel. The trading system we want is actually a car. In 1613, the Amsterdam Stock Exchange was established in the Netherlands. Speculation has been going on for 400 years, and the history of candle charts has exceeded 200 years. During this period, countless speculative trading masters have appeared, such as the Wave Theory, Memoirs of Elliott, Livermore's Principles of Professional Speculation, Victor Turtle Trading Method, Richard Dennis, etc. These masters have already built wheels, engines, and steering wheels. What we have to do is actually assemble, optimize and debug.

For example, use the wave theory to determine the direction, use the trend line to determine the entry area, use the reversal pattern to determine the starting market, use the channel to determine the target position, and use HR to determine the stop loss condition. As for this system that I gave random examples, to put it bluntly, I have the ability to use this system to achieve profits. Isn’t this much better than what many people say about 61.8% retracement entry, fixed 5% stop loss, and fixed twice the profit and loss ratio? So what you have to do is to combine these mature technologies and let them work in harmony, instead of groping behind closed doors. The things you are thinking about may have been thought about by others 100 years ago. Only by standing on the shoulders of giants can we achieve something.