How to distinguish between foreign exchange system trading and trading system?

System trading and trading system for just enteringforeign exchange marketFor investors, it is easier to confuse two concepts. What are the similarities and differences between these two concepts? I believe everyone will have such questions. The author will discuss trading systems and system trading with you today.

There is no consensus on the definition of system trading. The so-called system trading refers to a systematic trading method in which traders use a trading system to help solve problems such as information collection, information processing, trading decision-making, trading planning, and trading execution in the trading process. For a system trading, it basically includes its own trading philosophy and specific trading methods.

For different system traders, different trading philosophies are required, such as different cycle lengths, differences in investment concepts. Specific trading methods involve technical analysis, entry points, stop loss points, exit points, etc. Forecasting is not the focus. At the same time, as a system trader, you should try to eliminate some unnecessary subjectivity. The development of a trading system is a system engineering.

Trading system engineering is a system engineering that takes the trading system as the research object and designs, manufactures, inspects, evaluates, selects, actually fights, manages, maintains and upgrades the trading system according to certain purposes, in order to achieve the best overall effect. At this stage, traders are required not only to master the achievements of the previous trading system proficiently, but also to achieve the degree of establishing their own trading system; at this stage, traders are required to repeatedly concentrate on research; at this stage, traders are required to repeatedly design, manufacture, test, evaluate, select and actually use the trading system; there are not many people who can gradually create their own trading system in the actual process of combat.

System traders will resolutely execute the instructions of system trading according to their own system trading. For a system trader, every failure to comply with the trading rules is right, and every success that deviates from the trading rules is wrong. To succeed requires good mindset control, risk management, market analysis, the so-called 3M philosophy (Mind, Money, Market).

The author believes that there is not much essential difference between these two things, because both concepts are proposed on a major premise that is to systematize trading. It can be said that a trading system must have a complete system trading as a prerequisite. The trading system is just to program the system trading into a computer program to let the computer work instead of the human brain, and use the computer to replace the execution of some trading disciplines and trading principles that people find easy but cannot be resolutely enforced. But is the computer smarter than the human brain? This question has been debated in the last century. I believe everyone has an answer. Trading systems are not magic pills, and there are also their disadvantages. Let's introduce how to suggest a simple trading system.

The author's own trading system is composed of several parts. If you make a list, you may be dumbfounded, and you may not have heard of many board fast names. Today, the author mainly introduces the composition of a simple trading system.

The establishment of a simple trading system should include at least three parts, namely the entry signal system, the exit signal system, and the capital risk control system. The entry signal system and the exit signal system are mainly technical analysis tools and some financial models. Both systems must be built on the basis of a complete system of trading. Only if you understand system trading can you establish a trading system that suits your own personality.

The last piece is the capital risk control system, which can be based on technical analysis to set stop losses, volatility, and even financial models to build models or the simplest control method is to set a percentage for each loss.