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The three levels of money management in system trading

  System trad highestrebateforexg, cashback forex Forex rebate for you, trading according to a set of trading Forexrebateforyous system traders time getforexrebate energy is mainly focused on the development of trading systems in the securities rebateforexindonesia, for system traders using trend-based strategies, the elements of the successful development of a trading system and its importance weighting, may be designed roughly as follows: range, 10%; buy point, 5%; sell point, 10%; stop loss, 20%; money management, 40%; understanding, insight, adaptability and innovation of the system, 15% It can be seen that money management is the most important element in the system trading, money management is mainly reflected in the following three levels: (a) position that is the market value of stocks in the account / (market value of stocks + market value of bonds + cash) * 100% According to Dow theory and many times of later Statistics, about 75% of the individual stocks in a market trend is highly positively correlated with the general market Therefore, according to the general market risk factor to determine the position level, should be a good and sound choice For example, if the current general market risk factor is 70%, then the position should be 30% Of course, the general market risk factor is very difficult to judge Here we recommend three methods, one is the Taiwan Mr. Zhang Songling Table scoring method, the various factors affecting the broad market listed and given weight, design a table, daily scoring; one is a fund investment director, "K-line golden law" author of Mr. stock music proposed R28 law, that is, using R28 and A-share index against; the third is the simplest, is the current index in the latest significant operating cycle in the position, the application of the principle is the Zhou Dynasty National Librarian Mr. Lao Tzu proposed that the pole of things must be reversed, the height of the reverse can be taken according to historical statistics This paper only discusses the situation that can be used in the Chinese securities market, so for the role of the futures market and foreign securities markets commonly used in a variety of complex inverse equivalence harness model is not involved (b) portfolio that is, when holding multiple stocks, each individual stock occupies how much money here said portfolio and CAPM, APT basic In addition, whether to change stocks when the same system gives a new stock signal is also an issue that the system should take into account (c) segmentation, that is, the same stock buying and selling segmentation based on the trend-based strategy of the system Traders, in general, need to set up multiple buy and sell points, for example, the system set up three possible buy points, then each buy point should be invested in how much money, which also belongs to the content of capital management Of course, more often than not, this issue also belongs to the scope of the buy point, sell point, stop loss elements position, portfolio, segmentation of the three levels, in fact, are intertwined For example, when judging the general market For example, when the risk factor increases and the position has to be reduced, the portfolio and segmentation are often affected at the same time. Ideally, the system itself sets out clear rules for all issues, but due to the limitations of the software platform, it is practically impossible to do so.

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