There are many ways to invest in the world today. In terms of financial investment, the world’s largest investment markets are foreign exchange, bonds and stock markets. Especially, the foreign exchange market is well known for its monthly trading volume of up to $1 trillion and 500 billion, which is far higher than the second largest investment market, the US Treasury trading market. In the advanced countries and regions such as Europe and America, foreign exchange, bonds and stocks are the most common financial investment tools for ordinary investors, and also the most important tools for financing, value-added and anti inflation or risk aversion.
People invest in the purpose of increasing their own property, or to protect the existing interests to avoid risks, while there are many specific investment methods and investment tools. With the development of foreign exchange market, the importance of trading system is more and more concerned by investors. Therefore, the trading system is a key point that investors must master. The training of foreign exchange through financial investment brings investors to understand the trading system simply.
1、 Accurate definition of trading system
Trading system is a set of rules that can achieve stable profit in the trading market. It includes scientific fund management, effective analysis technology, good risk control. Its ultimate goal is to achieve stable profitability for traders. It can be divided into subjective trading system, objective trading system and the transaction system combining the two. A trading system is the heart and soul of a trader, which embodies the trading philosophy of traders. Therefore, it is not universal, that is, a trading system can only play the most effective role in its creator. So for traders, only by building their own trading system can they go on the road of stable profit.
Many market software have a signal to prompt the sale, they are also called trading system. For example, the software that mainly includes the function of market broadcasting and analysis is called trading system; The order system of online transaction order of customers such as jinshida is called trading system. These software have no function of risk control and capital management, no transaction strategy library, nor independent intelligent decision-making and issuing transaction orders. Therefore, they cannot be called trading system, but can only be called market broadcast software, market assistant analysis software or online trading order and transmission management system.
brief introduction
What is a trading system? In terms of simple concept, transaction system is the materialization of system transaction thinking. System trading thinking is a concept, which is embodied in the observation of the overall price movement and the observation of time continuity in the analysis of market judgment, and the comprehensive embodiment of the three elements of trading object, trading capital and trading investor in the decision-making characteristics. There are many contents involved in the thinking of system transaction, and it is impossible to focus on more space here. But it is necessary to point out that since the trading system is the materialization of the system trading thinking, it is not the current market which simple market broadcast software or auxiliary analysis software of the market can be compared.
2、 Source of trading system
In the stock and futures industry, the trading system is very confused and miscellaneous, not only the general stock holders, the period people; The public is not familiar with the public, including some people in the industry who often put the trading system on the mouth or even the written end of the statement, but they are actually not sure. Especially some software manufacturers and dealers, for the purpose of marketing, deliberately exaggerate the product performance, and blur the essential differences between the trading system and the general market broadcast software or auxiliary analysis software of the market, It is not conducive to the research, exchange and development of trading system.
Transaction system is the materialization of system transaction thinking. System trading thinking is a concept, which is embodied in the observation of the overall price movement and the observation of time continuity in the analysis of market judgment, and the comprehensive embodiment of the three elements of trading object, trading capital and trading investor in the decision-making characteristics.
The term trading system was popular on Wall Street since the late 1970s. Around the mid and late 1990s, a number of returnees followed the word into the domestic investment community. At present, there are not many special issues about the trading system in China, among which the wave of “system trading method” is recognized as a classic work, others include Wang Dayi’s “winner idea”, “Jinshi’s” permanent survival “, and” band win gold “by park Tiejun.
In addition, Xuefeng’s “practical skills of stock market technology analysis” is actually talked about a lot and very real. The foreign book is van Sakai’s “the road to freedom to the financial kingdom”, which is mainly from the perspective of trend tracking system, which is not very comprehensive. Unfortunately, the top several classic works of foreign trading systems on Amazon have not been translated into, such as “design, testing, and optimization of trading systems”.
3、 Classification of trading system
To be a successful trader, you have to understand how the market works. To be an excellent trader, you must first master the core market knowledge, then you need to stick to your own trading style, and then form your own trading system, and finally implement the corresponding trading strategy.
The most critical factor is the second level of the pyramid, and if you don’t have a thorough understanding of the trading system and the type of strategy, your trading results can only be disappointing. Since the market is always a zero sum game, traders usually complain that the trading strategy doesn’t work at all. So they have been struggling with poor returns and trying new trading strategies.
These traders often rush to various trade seminars and seek the “Holy Grail” strategy among so-called traders. But in fact, the Holy Grail, which is commonly used in various situations, does not exist at all. The problem itself is not in the transaction strategy, but in the application of the correct transaction strategy in the corresponding market conditions.
The existence and development of trading system has gone through nearly 100 years, from the familiar Jiang’an, lifomoore to Rogers. Besides statistical arbitrage and the recently rising high frequency trading, trading system can be classified into five types: trend following trading systems; Counter trading systems; Break through systems; Trading range systems; Hedging systems.