As a foreign exchange investment individual or company, the first point is to recognize that it is appropriate to use EA instead of blindly believing or disbelief. How to introduce EA should be combined with the trading strategy you are good at. The EA varieties currently on the market are relatively complete, long-term, mid-term, short-term classification, various trends, shocks, cycles, and hedging strategies.
As an EA user, the most important thing to keep in mind is that EA is not a thing that can make money lying down, it is a tool to help you fight in the foreign exchange market. Don’t be superstitious about EA. Every EA strategy requires artificial basis. Adjust the market parameters and set strict risk control, because EA is not a 100% win rate. In short, you must fully understand the EA you are using and use it appropriately.
What skills do I need to master for foreign exchange EA trading?
- The trading strategy of hedging orders in the volatile market:
“Hedging orders” using the same currency are called “direct hedging”. The purpose is not to “lock the order”, but to open positions “one buy” and “one sell” at the same time when the market has been in a narrow range, and set profit and stop loss. The disadvantage is that the position of stop loss and take profit is not easy to grasp, and both ends may stop loss.
- Linked trading strategy:
This strategy is also called “neutral hedging”, such as using EUR/USD-USD/CHF, GBP/USD-USD/CHF, AUD/USD-NZD/USD and so on. Use the currency’s linkage to enter the market to operate “neutral hedging”, but in order to reduce risks, asymmetric positions will be used to open positions, and the currency’s overnight interest difference will be used to earn interest margins. For example, EURUSD=1.06 and USDCHF=1.00, you can open a buy order for 1.0 lot on EURUSD and a buy order for 1.06 lot on USDCHF to offset the risk. But the disadvantage is that when the two currencies diverge, the loss of foreign exchange fluctuations will be much higher than the interest income.
- Martingale and anti-martingale trading strategies:
Martingale’s theory is to double the deposit if you lose, while anti-martingale is to double the deposit if you win and reduce the deposit if you lose. Martingale strategy is actually a strategy to profit by probability. This strategy is not only used in the foreign exchange market, but also widely used in many other financial trading markets. If there is no perfect fund management protection mechanism, the deeper and more open positions with this strategy will cause a very large and rapid loss, and it is very easy to wipe out the profit when encountering a large loss. . But the anti-martingale strategy is just the opposite. It increases the size after making money, and reduces the size when losing money. Therefore, when there is a trend in the market, the implementation of the anti-martingale strategy can obtain very surprising profits.
- Ultra-short-term strategy:
The analysis cycle is mainly in the 5-minute chart, and the profit target is generally 10-40 points. The stop loss is generally half of the profit. The key reference is M10 and M60 in the moving average chart. Daily foreign exchange transactions are available in Asian, European and American markets, and most transactions are concentrated in European and American markets. The advantage is that it is more flexible and does not require long patience and waiting. The difficulty is that you must stop losses in a timely manner. The disadvantage is that frequent transaction fees are relatively high. The overall take profit is to close all orders in the direction managed by this EA when the set conditions are met. For example, if a long order reaches the overall take profit setting condition, the EA will automatically fully close all long orders managed by Ea.
Trading mentality not only affects ordinary trading operations, but also has a significant impact on quantitative trading
Many people aspire to become quantitative traders, but not everyone meets the requirements of quantitative traders. In the interview of a large trading company, the candidate needs to be identified as a trader. Adventurous spirit, ability to accept failure, ability to withstand stress, and long working hours are some of the assessment indicators during the interview.
If you want to know if you have the potential to become a quantitative investor, you can establish a clear trading plan for yourself and use it as a clear quantitative investment plan to learn and master the techniques of the above articles. Whether it is manual trading or EA trading, do not have the psychology of getting rich overnight and buying a house and a car every minute.
Summary: Forex trading is divided into manual and automatic trading. It is nothing more than two types. Take orders with the trend and add positions against the trend. No matter which trading strategy is 100% profitable, you must summarize experience in the trading process. , Do a good job of risk control, do a good job of what should be done, naturally you can’t go wrong.