How to avoid the risk of futures trading and increase the winning rate?
I sorted out the principles of this long BTC trading strategy.
This is a trading system with a high winning rate that I often use. It is very simple and practical. I will share it with you now, hoping to help you.
As we all know, the risk of futures trading is very high. If you are a novice, then you are prone to failure. Liquidation and asset zeroing are common things. In severe cases, you may even screw up your life. This is very common for most novices.
So how do we change this state of affairs?
First of all, we must improve our trading capabilities by working hard to learn various professional knowledge.
The second is to use small funds to start to practice and accumulate experience slowly.
Of course, this is a very long process. We need to maintain enough patience, not give up because of one or more failures, and not affect our mentality because of market fluctuations. We must always maintain a stable state of mind to learn and practice.
Then someone will ask, what if I don’t have enough patience?
What if I don’t have much time to keep learning and practicing to improve myself?
If you belong to this situation, without your own trading system, then failure will often accompany you until you leave the futures trading market forever as a loser.
Or you choose to strictly implement the trading strategies of professionals.
The first thing we think of when doing futures trading is not to make money, but how to keep the principal!
This is very important. Only under the premise of keeping the principal can we be qualified to seize more opportunities.
Can’t have too much FOMO
If you follow the trading strategy of the wolf king, then you have to choose to believe and reduce hesitation to improve efficiency.
In the process of following, your trading ability will definitely be improved.
Below is my RSI trading system:
RSI 4 times cycle contrarian principle
In a down (up) trend
Only when the RSI reaches the overbought (sell) zone
And retrace the 50 position (sometimes it will retrace to the opposite oversold area)
Only when it breaks through overbought (sell) again will it consider doing a counter-trend Reversal.
You can look for the inverse principle
Open long positions, but don’t be too greedy to hold them for a long time. The reverse principle can only obtain short-term profits.
There are many people who are good at opening positions, but few are good at closing positions.
Because people are greedy, this requires us to act against our inner thoughts, which is undoubtedly very difficult.
RSI trend-following strategy
In a downtrend, the k-line must be below ema50
When the first time the oversold area is touched, it means that the trend has started, and then go short at each retracement support resistance position
As mentioned above, we will find that the success rate of going long against the trend is much lower than the success rate of shorting following the trend, so only when we successfully form an N-shape against the trend and stand above ema50 will we consider doing long.
This is also the reason why I drew the N-type path when simulating the trajectory of BTC.
Note that the RSI contrarian trading strategy is suitable for shock range trading and harmonic trading.
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