Analysis of the strategy of opening a high winning rate | Three-step position building method

No matter what trading system or strategy is used for trading, the importance of opening a position as the first step in trading is conceivable. As the saying goes, “A good start is half the success.” In trading, an accurate opening of a position can often increase the success rate of the transaction. Today, we will take position opening as the core and deeply explore an efficient and stable position opening strategy – a three-step position building method.

In the current market, the mainstream position building methods are mainly divided into two categories: left-side trading and right-side trading. The left-side trade emphasizes prediction, that is, to make arrangements in advance before the market signal is clear, in order to capture the best entry opportunity; while the right-side trade is more cautious, and it waits for the market signal to be clear before entering the market. Although it sacrifices some price advantages, it wins in stability.

But although the left-side trading can enjoy the price advantage, the success rate is relatively low, and it often requires multiple trial and error to find a good opportunity; while the right-side trading is stable, it often faces the embarrassment of entering the market “half-mountain” and misses some profits.

The three-step position building method is based on the trading logic of the left and right sides, and adopts the method of building positions in batches to avoid the shortcomings of the left and right sides, achieve an increase in the winning rate, and achieve an increase in the profit-loss ratio through position control.

Detailed explanation of the three-step position building method

Step 1: Predict the left side, layout first

First, use the concept of left-side trading to make preliminary predictions on the market direction and identify the keyThe technical resistance level serves as the inflection point of long and short. The key to this step is to have a keen insight and accurate judgment of market trends.

Step 2: Place orders at technical resistance point, enter the first batch of positions

Immediately afterwards, place an order near the technical resistance point and automatically complete the transaction when the market reaches this point, and enter the market as the first batch of positions. This move aims to take advantage of the price advantage of the left-hand transaction and lock in part of the profit in advance.

Step 3: Confirm on the right, increase your position and follow up

When the market advances to the technical resistance point, increase positions in a timely manner according to the trading logic on the right and the actual market trend. If the market fluctuates as expected, wait for the right signal to be clear before adding positions; if the market experiences a brief pullback or a false shot, keep the first batch of positions unchanged and continue to observe; if the market turns ahead, the first batch of positions will be cancelled and enter directly by trading on the right; if the market completely reverses, stop the loss in time to protect the safety of the principal.

The core essence of the three-step position building method is to use positions to control the profit-loss ratio. When the market cooperates, you earn two batches of positions. When the market is unfavorable, you only stop loss of one batch of positions. Therefore, compared with the left or right trading method, the three-step position building method will be more stable and the winning rate for traders will be higher.