What is the design principle of 1.5 minute momentum trading system? The foreign exchange market is a very volatile and frequent market, and it is simply misleading to copy the operation method of the stock market. At present, the author thinks that the trading methods that conform to the fluctuation characteristics of foreign exchange market are chaotic trading method and turtle trading method. In the process of studying and applying the chaotic trading method, the author simplifies, refines and summarizes the chaotic trading method with Occam's razor principle, and obtains a trading system that is more in line with trading psychology and more operational-the 5-minute momentum trading system. ? The three indexes of chaotic trading method are crocodile line, AO index (kinetic energy index) and AC index (acceleration index). Through research and summary, the author uses 20 moving averages instead of crocodile lines to track trends, MACD bar lines instead of AO indicators (kinetic energy indicators) and MACD signal lines instead of AC indicators (acceleration indicators). The index is simplified, but it is more operational and easier to master. ? According to multiple traders and MT4 automatic trading programming test, it is a trading system that can be profitable for a long time. Some traders used the five-minute momentum trading system to create a record of account funds 10 times in one month. I can't guarantee that everyone who uses this trading system will make a profit of 100%, but I can assert that when you can flexibly use the 5-minute momentum trading system, you will definitely reduce your losses. What are the index parameters of 2.5-minute momentum trading system? 1. Candle line (K line)? 2.20 day moving average (MA 20)? 3. How does 3.MACD III operate? When K crosses the 20-point moving average for the first time about 10, and the MACD column line crosses the 0-axis from bottom to top (the column line changes from green to red), at most 5 column lines will be opened. ? The initial stop loss is set at 20 points below the 20 moving average. When the price rises to the equivalent stop loss point value (if it is a 30-point stop loss, it should be closed at a profit of 30 points), half of the position will be closed and the remaining half will continue to be held. ? As long as the K-line does not fall below the 20-point moving average, it will always hold the remaining 1 half position and realize "letting profits gallop". When the K-line crosses the 20-point moving average and exceeds 20 points, all the remaining positions are leveled. ? Toure? As shown in the above figure, when the price of EUR/USD crosses the 20-point moving average, if the MACD column also crosses the 0-axis from bottom to top, it can be considered as long, and the admission price is 1.4 126 above the 20-point moving average. Stop loss is set at 20 points below the 20 moving average, namely 1.4096 stop loss. (Do more above the 20-year moving average 10 to prevent false breakthrough. Above the 20-year moving average 10 is only a reference for operation. )

When the price rises to 1.4 156 and the profit reaches 30 points, the position of 1.5 will be closed, and the remaining positions of 1.5 will remain long as the price does not fall below 20 points of the 20-point moving average until the price falls below 20 points of the 20-point moving average, and all positions will be closed.

"Shortening profits and letting losses gallop" has always been a weakness that traders cannot overcome. I have seen traders who have been making steady profits for months. Because they didn't strictly stop the loss once, all the profits vanished in an instant, and even led to the loss of principal. When designing this trading system, the author fully considered the impulse of traders to cash in profits. When the profit point is equal to the stop loss point, he cashes in 1 half of the profit and uses the remaining half of the position to realize "cutting off the loss and galloping profits".

The above picture shows the operation of shorting GBP/USD. You can short when the price crosses the 20 moving average from top to bottom and MACD crosses the 0 axis from top to bottom. At this time, set a stop loss of 72 points. (The stop loss is set at 20 o'clock below the 20-point moving average as a reference, and the stop loss space of currencies with large fluctuations such as GBP/USD can be set larger. )

After shorting, the price fluctuation during the period did not exceed 20 points of the 20-point moving average. When the price drops to 1.645438+0, it gains 72 points, closes half of the position, and holds another position of 1.5.

As can be seen from the above figure, in the process of holding positions, the price of the remaining half positions broke through the 20-point moving average, but it was less than 20 points, so we continued to be short. When the price reached 1.6323, the price exceeded the moving average by more than 20 points, and all the remaining positions were leveled, making a profit of 2 10 points.

The 5-minute momentum trading system is a simple, practical and easy-to-master trading system. The system introduces when to enter the market, how to stop loss and how to enter the market. Considering that traders are eager to cash in profits, they will cash in half of the profits during the trading process and use the other half of their positions to realize "letting profits gallop". The trading system embodies the concept that appearance is more important than admission. Many books basically use a lot of space to introduce how to enter, but rarely introduce how to enter. That's putting the cart before the horse. This trading system embodies the trading idea of "reducing positions and making profits", and the method of "increasing positions and making profits" is simply misleading. The foreign exchange market fluctuates greatly in the short term, and the daily fluctuation space determines the operation method of not adding positions on the basis of profit.

A good trading method needs a good operator to make a profit. Readers are advised to use simulated trading for 3 months before trading with real accounts. In addition, the author found from years of foreign exchange trading that the foreign exchange market, like the stock market, rose slowly and fell quickly, and I prefer to short with the 5-minute momentum trading system; When European and American stock markets open, international hedge funds generally wash the foreign exchange market. I like to trade 1 hour after the opening of European and American stock markets, and it is easier to grasp the opportunities that arise at this time.