Day trading, only going long, a very good strategy

There are 3 common mistakes in trading, described as follows:
1 Habitually burying one's head in the sand
Once a trade does not go in the expected direction, some people behave like ostriches and bury their heads in the sand, ignoring the situation. Many people lose a lot of money because of this; they watch their losses expand without taking any measures, allowing the situation to develop unfavorably, even closing their accounts in the hope that the market will recover.
2 Inner conflict and resistance
When executing trades, traders often experience significant inner conflict and resistance. For example, if a stock triggers your stop-loss condition, the system states that you should exit the trade unconditionally, but thoughts like "What if the price rebounds after I stop-loss?" arise in your mind, leading to intense internal struggles, which can be very painful.
3 Living in one's own fantasies
When the stock price of a held position falls, traders look for positive news to comfort themselves instead of quickly taking countermeasures; when the stock price rises, they fantasize about it increasing even more, hoping to double their profits after gaining 50%, and then wishing to double it again, rather than conducting scientific analysis based on logic, trends, and fundamentals. This is a manifestation of fantasies occupying their minds.

Four major risks
There are many types of risks, and there are many ways to measure them. Some big risks arise from relatively rare events that may not occur a few times in 10 years; others are more common and may occur several times a year. Most traders worry about four main types of trading risks:
· Decline: A series of losses that shrinks your account.
· Low returns: The returns are so low that the money you make is negligible.
· Price volatility: A sudden change in price in one or more markets results in significant and irreversible losses.
· System death: A change in market conditions causes a system that once worked to suddenly fail.

Cognitive biases
· Loss aversion: There is a strong preference for avoiding losses. That is, not losing money is far more important than making money.
· Sunk cost effect: Pay more attention to money that has already been spent than to money that may be spent in the future.
· Disposition effect: Cashing in profits early and letting losses continue.
· Outcome bias: Judging the quality of a decision only by its results, without considering the quality of the decision itself.
· Recency bias: Pay more attention to recent data or experience and ignore earlier data or experience.
· Anchoring effect: Over-reliance on (or anchoring) easily accessible information.
· Bandwagon effect: Blindly believe in something just because many other people believe it.
· Law of small numbers: Drawing unfounded conclusions from too little information.

Failure experience: Counter-trend strategies are extremely risky in the cryptocurrency world. It may be better to follow the trend and catch hot spots, such as BitLanglang, which made 10,000 times the profit and then withdrew from the circle.

Very unsuccessful, the previous strategy over-focused on volatility and did not consider the trend, which is not acceptable!!!

A model of high-frequency band single cutting of leeks

Today surged, the strategy is somewhat failed.

Emperor of the River Ascends the Throne

I want to research an effective quantitative hedging strategy. I have already thought of a name for it called knotmainProMax. I hope to complete it as soon as possible in my spare time.

Summary of Strategies for Following Orders

I have followed many orders and lost a lot of money.

However, the money was not wasted; I gained a lot of life experience. Moving forward, I will work on my own to gradually recover the money.

There are mainly two types of strategies for following orders: trend-following strategies and counter-trend strategies.

Trend-following Strategy: Open positions when the price breaks through. A typical follower is Tony, who plays small bets. This strategy has a low success rate; during sideways movements or small fluctuations, it often incurs losses and can easily be misled by false breakouts. However, once a major trend is grasped, one can make significant profits. Overall, the risk is still reasonable.

Counter-trend Strategy: Open positions when the price experiences significant rises or falls. A typical follower is Tortoise and Hare 985. This strategy involves counter-trend trading and holding until profitability. Due to the holding nature, this strategy has a high win rate, but the risks are also high. The risk depends on the frequency of adding positions and leverage. Tortoise and Hare 985 made 5 million in half a year but went to zero in just a week. With appropriate risk control, this strategy should be able to generate profits in the long term, such as follower DDBXXB, who also employs this strategy but controls risk well.

Based on trend-following or counter-trend strategies, using hedging can significantly reduce risks. For example, follower Knotmain seems to imply some trend-following hedging. The risk factor is very low, but whether one can make money mainly depends on the long-short ratio and success rate.

Other followers who make dozens of points in profit in a day are best avoided; they might blow up their accounts overnight, including the aforementioned Tortoise and Hare 985.

Investment requires stability; I now need to rely on my own strategy to recover the losses!!!

Establish Your Own Trading System

It’s not easy to make money in the cryptocurrency world