How Forex Rebates Work

Foreign exchange good article M trading system perfection process

Self- cashbackforexreviewtroduction: I am a once lost 100W RMB, so much so that the financial fanatic early what HowForexRebatesWork bestforexrebaterates underst premiumrebateforex, and like to chase windfall, 400 leverage six months time lost more than thirty W later comprehensive summary of trading gains and losses, read a variety of famous books, shopping forum to learn from, finally wrote the M trading system How Forex Rebates Work now strictly enforced trading code, light positions, homeopathic, and the M trading system perfection process. Combined with fundamental analysis to do intraday homeopathic single, occasionally play swing M trading system perfection course: March 9, 2012, the first time into the foreign exchange cashback forex in early August 2012, create "minimum resistance line principle" in mid-September 2012,  create "Strategic and tactical position management" on October 10, 2012, trading principles initially perfected in mid-November 2012, created the "money management" principle on November 20, 2012,  Initially have the concept of "profit-loss ratio" November 29, 2012,  create M formula, named M trading system December 1, 2012,  substantial collation, refinement, make it more organized, systematic create "right-hand side trading The "right side trading" and "follow the trend trading" principles February 25, 2013, After missing the gold $130, the British pound 800 points and the euro 400 points market, the creation of the "strategic layout" outline decided to completely Give up short term trading, only do more than 200 points in the big market first: trading system trading system (to be improved): 1, trend judgment, decide whether short term single or medium and long term single; 2, retain your advantageous position, is to do the basis of the long term; 3, determine the best entry point, support points, resistance points; key support points into the field, key resistance points camera out; 4, according to the principle of capital management Entry; 1/10 position, the capital retracement rate is not allowed to exceed 10%, profit-loss ratio shall not be less than 2:15, broken stop loss, no single resistance; fixed stop loss: short term 50 points, medium and long term 100-200 points give up short term trading, only do medium and long term medium and long term trading, do is the trend, do is the fundamentals, do is the mentality, do is the stable income therefore, tolerate the desire to operate, tolerate the short-term fluctuations, do not care about the momentary gains and losses. Do not care about momentary gains and losses, so that the foreign exchange market can be based on the principle of stable and sustainable profit: trading is essentially a game of probability, that is, each time a great grasp of the basis of investment, even if there is a loss, but the overall probability of profit is greater, to achieve stable and sustainable profit but, to achieve stable and sustainable profit, not only to grasp the "probability" However, to achieve stable and sustainable profits, not only to grasp the "probability" of events, but also with "capital management" and "reasonable profit-loss ratio" combined with capital management, without further ado, the essence of "follow the trend and reduce the rate of withdrawal of funds" strict implementation, can To ensure a stable "loss minimization, profit maximization" profit-loss ratio is a reasonable requirement of 2:1, improve the profit-loss ratio can greatly improve the profitability of the right-hand side trading principle: the so-called right-hand side trading, refers to avoid disorderly fluctuations, can not be expected, no trend of trading behavior right-hand side trading advantage is homeopathic, high success rate, the disadvantage is that short-term profitability discount; but in the medium and long term, more conducive to achieving stable profits as opposed to the left-hand side of the transaction, that is, predictive trading right-hand side trading, because of the clarity of the situation, so the variables are less; performance to do unilateral, that is, chasing up and down to comply with the principles of right-hand side trading are: 1, generally do not do Asian market because Asian market trading light, volatility is not good, no trend best to do after 6 pm, when European data, important events have been absorbed by the market, there is a good trend and volatility; generally the U.S. market is a copy of the European market, just amplify the volatility because the U.S. trading volume, high importance of events,   so the focus is still the U.S. market and many times, the U.S. market trend and the European market diametrically opposed, even after copying may also come out of the independent market 2, do not do vacation market  Europe and the United States important When the market is closed, the trading volume is light, no volatility and trend, often strange performance, up and down because at this time only a small amount of money can cause sudden changes in the market, easy to be manipulated 3, avoid important events such as non-farm payrolls, important data, interest rate meetings, fiscal reports and the like because the news is not transparent and lagging, we can not grasp and violent shocks,  easy to generate large losses 4 The second: trading strategies homeopathic trading: homeopathic trading is a right-hand side trading homeopathic trading means that no matter how high the point, you can chase up; point how low, you can do short reason for this, because the financial market is originally done is expected, a few minutes A few seconds, a few days financial market trends are a variety of people, a variety of ideas, a variety of expectations, a variety of information, a variety of expectations, etc. intermingled, mixed together in a pattern of behavior trends up and down can not be separated from supply and demand when supply exceeds demand, prices will rise; oversupply, prices will fall under the stimulation of good news, buying demand increased, prices rose; driven by the negative news, selling demand increased, prices fell the more The more important the event, the more far-reaching its impact, and therefore the more dramatic the impact on prices many people flock to, can lead to a steady stream of prices rise or fall, a wave higher than / lower than a wave until the other reverse news, the process will slow down, turn around so, how the market, how you trade, is the homeopathic the stronger the market, the higher the possibility of continuing to rise / fall, and therefore do not know Where is the top and bottom "bottom touching the top" is actually against the trend, is bound to suffer losses, so, a comprehensive multi-short analysis, trading signals, unless there is absolute certainty; otherwise, must comply with the "homeopathic trading" principle homeopathic trading is the way, only in line with the probability of events Trading pattern hunter tactics: the so-called hunter tactics: is to do foreign exchange like a hunter, usually idle; as long as the prey, it is fully loaded alert; in the best time, a shot to hit the foreign exchange market ups and downs, turbulent, wind and sunshine behind the hidden killing machine every day seems to be a lot of opportunities, once admitted to be bruised, physically and mentally exhausted savvy hunters are good at hiding their light, seemingly idle wandering, in fact, constantly pay attention to Strategic layout: strategic layout to do is the trend, do is the swing economic development has its own intrinsic regularity, the financial market fluctuations and economic development trends are closely related to the strategic layout refers to the economic development of the inflection point to do more or short financial markets strategic layout because do is the inevitable trend, so is to follow the trend of the temporary floating loss is only pain, which must be taken lightly Strategic layout of the conditions in addition to the economic development of the inflection point, the most important is the appropriate entry point we often find after the fact that a certain entry point is the best, but because of multiple concerns do not dare to enter this, on the one hand, to increase the economic fundamentals of the trend of judgment, on the other hand, must resist the outside world and internal interference of various strategic layout of risk from heavy positions and paranoia (strategic layout curing no more than 20% loss, and The risk of strategic layout comes from heavy positions and paranoia (strategic layout curing no more than 20% loss, compared with short-term trading is almost negligible), but brings several times or even dozens of times the return a year to catch a single is sufficient Best point:   no grasp never take a shot even if there is a grasp, but also to find the best point Best point can ensure maximum profits, but also to do the minimum stop loss, in and out of the choice of the best point, try to avoid the Asian plate general Asian plate fluctuations 10 points, the European plate will fluctuate 30 points, the American plate will fluctuate 50 points and The U.S. market will fluctuate 50 points and Asian trading up and down and European and American trading up and down is not always the same, sometimes diametrically opposed at the same time, the general trend of European trading U.S. trading will go again, miss the first time in the U.S. trading opportunity to enter the best point in addition to the fundamental research and judgment, technical analysis is also very important try to choose resistance points / support points near, while referring to the opening price and high point, low point high and low point from the opening price point difference can be used as The research judge more or less according to, but at the same time to beware of inducing more / empty with the opposite is frequent operation frequent operation may lead to the hand of profit into loss, while the psychology of retrieving losses, the deeper you fall, and eventually lost points to the direction, in the oscillation of the loss of all the principal several kinds of single: & nbsp; 1, ultra-short, time not more than 1 hour; & nbsp; rapid market retracement or important events before the various deviations 2, intraday, generally not overnight;   do daily, the expectations of the day and tomorrow 3, short, no more than a week;  do weekly, grasp the high and low points within a week, only do high short low twice 4, medium-term, two to three months;   do is to months or even years as a period of large waves of a section of 5, long, more than three months;   nbsp; do is a long-term trend, ignoring all fluctuations comprehensive difficulty: medium > long line > short line > intraday > ultra-short comprehensive earnings: medium line > long line > short line > intraday > ultra-short ultra-short the easiest,   scalping the same, no brain, but requires good energy  ultra-short the secret In the "fast in and fast out", "never stay", "never greedy" intraday relatively simple, generally do data, interest rate resolutions, speeches, meetings and other intraday secret is "right-hand side trading", "homeopathic trading" short term some difficulties, generally do a week of the market intersection, cumulative, requiring good patience short term secret is "resolution expectations" long term very difficult The secret of the long term lies in the "laws of the market", "trendiness"   the medium term is the most difficult,   the medium term is based on the long term and The development of the normal retracement of the long line  The secret of the medium line is to "follow the focus", "speech analysis" Third: capital management and risk control chapter Risk control: 1, position curing 1/10; capital The rate of retraction is not allowed to exceed 10%; (1.5W USD after the capital retraction rate is not allowed to exceed 5%, 1/20 position) 2, the strategic layout of the maximum loss of 20%, based on comprehensive and detailed fundamental analysis 3, only do the euro, Australian dollar and pound and other familiar currencies, gold, silver no absolute certainty never intervene; 4, there is a loss: immediately leave the market and wait and see, do not gamble to increase the chips, review the fault funds Management principles: the so-called: coquettish women can not cook without rice away from the money, what technical analysis is bullshit thus capital management is particularly important capital management sub position management and capital allocation position management: position is never allowed to exceed 1/10, and strategic position and tactical position is almost completely different strategic position is the key position, every loss of more than 10 points to add a position, depending on the situation, generally need to add positions 5-8 times to complete. Large stop loss, the target profit is generally more than 500 points, or even more than 1200 points Strategic position raising requires close and accurate judgment of the future trend, and at the same time to believe in their own judgment, tolerate the temporary loss and perhaps a few days or even weeks of bottoming fluctuations Tactical position raising is based on profit, add a position for every profit of more than 10 points, and by default add 5 times after the observation until the last single start of losses. The closing point according to the situation can be profitably closed or stop loss in the Pingbao place The advantage of doing so is: follow the trend, not to guess the market, the first entry is not profitable, it is not necessary to add a second position; the second position is not profitable, it is not necessary to add a third position so that you can ensure the stability of profits and capital does not retreat disadvantage that is, belongs to the right side of the transaction, profits less capital allocation: that is, the strict use of funds, can not exceed 1 / 10 Strict use of funds, that is, light positions, can make people easy to place orders, risk resistance, while increasing self-confidence; capital retraction rate is more important if the $10,000 loss of 50%, the recovery of the principal needs to profit 100%, and the less capital, the less risk resistance. The less money, the lower the risk, while the burden of trading also invariably increase the rate of capital withdrawal, in order to better achieve stable profitability tactical layout: (pyramid position and position management) the market is not your own market foreign exchange movements, even the most astute short wave king may not be able to calculate the first entry, even according to the best stop loss to determine the best point, there is always an accident, therefore, test the market is necessary the first entry, the position for a light position (maximum 1 / 5) of 1/4, that is, the maximum total position of 1/20 so that the total risk of 20%, that is, 5 mistakes will be burst only for absolute certainty when using the position for a light position (fixed 1 / 10) of 1/4, that is, a fixed total position of 1/40 so that the total risk of 10%, that is, 10 mistakes will be burst this is a regular configuration In fact, the riskiness of the first entry is only 2.5% according to the configuration, up to 3 times the first increase in positions, for the second increase in profits of more than 10 points, the same reason the third increase in positions, the same reason strategic layout: (inverted pyramid position and position management) the so-called strategic position and increase in positions, is expected to trend will appear intermediate or long-term reversal, in accordance with the "pyramid type position and position increase management" in the opposite way, that is: on the basis of 1/10 of the total position, the first entry is 1/4 of the light position, and for every 10 points of loss, the position is increased once, up to 3 times for the sake of safety, the position and position increase management can be changed appropriately, that is: on the basis of 1/10 of the total position, the first entry is 1/6 of the light position, and for every 10 points of loss, the position is increased once, up to 3 times for the sake of safety. 10 points, add a position, up to 5 times after the position is added, then patiently wait for the market reversal tactical positions and position management unified stop loss of 50 points, strategic positions and position management unified stop loss of 100 points such as forced stop loss, resolutely by its burst position, and then reconsider the entry point and direction if the position is successfully added, then every key point, in accordance with the "pyramid position and position Management" gradually increase the position total position control on the basis of 1/10, profits are all used to increase positions lock principle: the purpose of locking positions is to lock profits and losses, to prevent the reduction of profits and losses to expand 1, the trend is the most important   only in the case of the correct trend is necessary to lock positions, otherwise we must not hesitate to cut off any losses 2, lock positions to distinguish between the main and secondary  Keep the trend correct main position, auxiliary lock position even if there is a loss should also be firmly cut off the trend is most important, not who loses less to stay, otherwise large can be cut off 3, do not blindly lock positions only to determine the temporary need to rebound when it is necessary to temporarily lose, as long as you do the right direction, you can soon unwind and profit 4, medium and long term single temporary lock position lock position is to preserve profits, while retaining the dominant Entry point at the same time, lock position in the hedge single can also make money masters or even in a medium-long single in multiple lock profit 5, temporarily can not grasp the trend, lock position and do not set a stop loss so that we can relax, stand outside to observe and think about the fourth: stop loss and profit and loss ratio chapter stop loss principle: the significance of the stop loss: the reasonableness of the judgment position position is swept away, can not indicate that the trend is wrong judgment, the Perhaps improper stop loss or entry point poor key resistance points / support points set at the stop loss is also often disturbed (fake K-line, dramatic quotes) In that case, why set a stop loss? First: the stop loss is set to judge the correctness of the position is swept away to indicate the direction of the position, entry point or stop-loss point problems; this time should re-examine the trend, entry point and stop-loss point Second: the stop loss is set to represent the risk factor, that is, how much risk is willing to risk this position strategy to increase positions, 100 - 200 points stop loss are necessary Stop Loss Settings: 1, according to wave theory and Fibonacci lines, to Determine the possible strong support points, from this strong support points should have about 20 points of floating space, embankment fast sweep 2, according to the last cycle of high and low points, opening prices, closing prices to determine the minimum resistance line principle: foreign exchange trend is like water potential, in case of strong is difficult to walk, in case of weak is like a breakthrough foreign exchange trend always tends to move in the direction of least resistance In fact, this can be explained by the supply and demand relationship fruit encounter resistance point, the trend began to slow down, flatten or even diverge, then she will turn around to seek support; if you meet the support point, the trend began to slow down, flatten or even diverge, then she will rebound upward, until the upward movement is blocked and when the resistance point and support points constitute the space is increasingly small (or mean intensive crossover), she will face a choice of direction according to the principle of minimum resistance line, when the trend is blocked, the floating surplus can not continue to When the increase, should take profits and lock positions is wise, but unlocking is more trouble; close and build a counter position, is more risky; the best is to leave the field to wait and see of course, the resistance line is broken into support, support line is broken into resistance arbitrarily according to the resistance and support points or as a profit target is not wise, must be combined with the K-line trend and the underlying profit-loss ratio principle profit-loss ratio: profit / loss ratio stable Sustainable profitability requires a reasonable profit-loss ratio of 2:1, that is, willing to lose $1000 to get $2000 profit the lower the profit-loss ratio, the less conducive to stable and sustainable profitability reasonable profit-loss ratio: 2:1, that is, 80 points stop loss, to ensure that you can get 160 points of profit profit-loss ratio of 1:1 case, even if you do 50% probability of profit, in the long run, can only ensure that no loss taking into account the commission, heavy positions Trading, more than 30 consecutive transactions, you can burst the position on the contrary, the profitability rate increased to 2:1, if you can still maintain 50% profitability probability, 1/10 position principle, you can achieve 10% sustained profitability of various profit/loss ratio and profitability conversion: (ignore the commission, position to 1/10 calculation) profit/loss ratio win rate profitability win rate   Profitability 0.5:1  50%  loss 2.5% 40% loss 4% (three losses and two wins, five trading losses of 20%) 1:150%  break-even 40% loss 2% (three losses and two wins, five trading losses of 10%) 2:150%  profit 5% 40% profit 2% (three losses and two wins, five transactions 10% profit) 3:150%  profit 10% 40% profit 6% (three losses and two wins, five transactions 30% profit) 4:150%  profit 15% 40% profit 10% (three losses and two wins, five transactions 50% profit) The formula is: set Profit-loss ratio is P = a:1 (a> 0), the win rate is R = n/100 (100> n> 0). Then profitability M=[an-(100-n)*1]/100=n(a+1)/100-1 i.e. profitability M=n(a+1)/100-1 or M=100R(P+1)/100-1=R(P+1)-1 i.e. profitability M=R(P+1)-1 Example: If the win rate is 50% and the profit/loss ratio is 1:1, then the profitability is 0 If the win rate 50%, profit-loss ratio 2:1, then can be profitable for 0.5 if the win rate of 80%, profit-loss ratio 3:1, then can be profitable for 2.2 further increase coefficient: set position ratio K = 1/k (k & gt; or = 1), generally have k = 1 full position, 10 & gt; k & gt; 1 heavy position, k = 10 light position, k & gt; 10 very light position, k & gt; 100 institutional play K represents risk coefficient, the greater the value of K, the higher the risk; the smaller the value of K, the lower the risk then profitability M = {R(P+1)-1} / K further increase coefficient: let the leverage ratio B = b:100, the standard b = 100; common b are: stocks for 1, domestic futures 10, international foreign exchange 100,200,400, the maximum up to 2000. then profitability M = B {R(P+1) -1} / K leverage is related to: full position, leverage 100, then the euro 1 standard hand effective stop loss of about 100 points; leverage 200, effective stop loss of about 50 points, can do 2 hands profitability formula: M = B{R(P+1)-1} / KB represents the leverage factor, R represents the win rate, P represents the profit and loss ratio, K represents the position ratio B = b/100 (b = {0,10,100, 200,400,2000...}) B = 0 on behalf of no leverage B value, the greater the return, while the higher the risk R = n/100 (0P = a/1  (a> 0) K = 1/k  (k> = 1) k = 1 for a full position, 110 for a very light position, k> 100 for the institution to play the fifth: experience and lessons learned chapter a few lessons: 1: deviation state deviation is the market chaos, the down not down, the up not up, and even up and down, not in line with the fundamentals of the divergence there are two explanations: one is the agencys trend divergence; second is the asymmetry of the news, the agency holds important news that has not yet been released, causing the trend does not match the current fundamentals  What we have to do is: the best program is to wait and see, the smartest program is to operate in the opposite direction with the current fundamentals Soros most like in the presence of Divergence when others do short he do more, don  t do more he do short 2: the best stop loss best stop loss is even the smallest stop loss will not blow up, but 20 points of light loss can not blow up even if the success of the best stop loss judgment for: a short period of time that appears to be profitable, and over time, profits expand best stop loss helps to determine the accuracy of the entry point, and thus determine whether the best Entry point / point 3: cold-blooded trading so-called cold-blooded trading, refers to the transaction to be resolute, bold, precise approach, to hit hard, profits do not specific is: in the best point light stop loss; absolute certainty, under heavy positions, the pursuit of maximum profits; when the position is wrong, resolutely cut off the position; when the market comes, do not hesitate, first single, after analysis 4: advance quotes foreign exchange is expected to do, so the event has not been issued The market has arrived, it is normal at this time do not look to the right and left, panic, more should be in accordance with the original analysis of the implementation of the market in advance is not considered a deviation, can only say that the general expectation to make, of course, does not exclude the early leakage of events in the foreign exchange market, buy news, sell the facts often occur when important data, try to avoid, too much does not match the expected deviation state: the appearance of deviation, either a major favorable, or there is a major short in short in short: when there is a divergence, often accompanied by a major, sharp market, of course, does not exclude the main forces slow response to observe the main, pay attention to the strength of the divergence and the market pull up, suppression speed and strength appear positive, the market does not rise, beware of major short; appear negative, the market does not fall, beware of major positive points taboo: (not suitable for trading) 1: strictly prohibited heavy trading heavy position Trading is essentially a gamblers mentality, earn a huge profit, lose a burst position, not at all sustainable 2: strictly prohibited frequent trading in the case of the original win rate is not high frequent trading is tantamount to slow suicide 3: strictly prohibited blind trading blind trading, no direction, no goal, completely incompatible with any trading principles 4: poor physical / psychological condition at this time mood irritability, lack of self-confidence, no patience, easy to impulsive once the entry The first is a trance, disregard for trading discipline, no ** accurate judgment of the direction and out / entry point, arbitrary single easy to cause unnecessary or even significant losses sixth: mentality chapter mentality bias: "market" is a good teacher, train your patience, convergence of your temper, and in your mistakes or pride from time to time to combat you only when we have a tough patience, good temper, know the wrong on the right The market is a good place for us to get the market 1: Confidence to do foreign exchange, in addition to a strict grasp of the fundamentals, self-confidence is very important so-called "foreign exchange in the confidence": is to believe in their own judgment, firm their own plans, do not trust the views and comments of others confidence can avoid self-confidence The "confidence" in foreign exchange is very important: it means to believe in your own judgment, to be firm in your plans, not to believe in the views and comments of others Confidence can avoid indecision, miss the market do not easily believe in the advice of critics and others, firm in your own will 2: not paranoia is the opposite of paranoia, paranoia is the firm belief that the market will go in the direction of their confidence is based on fundamental and technical analysis, and paranoia is blind, confused, purposeless foreign exchange market, with "partial belief" to do transactions, one may cause the expansion of losses or reduce profits, the second is to miss the market eventually in the burst position to endure the torment, regret, in fact, the rational approach is to continue to expand losses before the "resolute cut positions" so-called "Stay in the green hills, do not worry about no firewood burn", save strength, will eventually be able to retrieve losses and stable profits 3: not greedy to do foreign exchange, greed is absolutely not to have the market is ever-changing, and even in a moment of profit into a blowout foreign exchange money is not earned, but can lose out make money, the appropriate rest is very important especially when the big earnings, more Should leave the field because this time is the easiest greedy, also the most prideful, blindly single caused by the hands of the profit into a loss 4: patience is very important, must wait until the right point and then shot, once missed is waiting for the next wave on the potential in foreign exchange: foreign exchange market, sometimes calm as water, sometimes the waves shocked the sky behind the seemingly calm hidden evil, seemingly choppy in fact, the time has come suddenly such as a downpour, and suddenly The situation of the huge changes, the direction of the rapid change, even the most adept at predicting people will be surprised by sweating, by the body scales, however, all changes do not deviate from the same foreign exchange market is also a chapter to follow, it is determined by the supply and demand, expectations, policy, economic foreign exchange trend although ups and downs, but a period of time always tends to a single direction, this is because the decision of the foreign exchange trend of the fundamentals in a period of time always remain To the good or to the bad, the trend is relatively stable through the grasp of the fundamentals, you can grasp the foreign exchange trend or even, through the future of the global economic and political pattern of the forecast, to predict the foreign exchange trend of this long-term trend short-term trend is more elusive, but there are many theories of its research and prediction, such as wave theory, general potential has two waves, three waves or even four waves, five waves, not a completion; moving averages, on the Fibonacci lines can even predict the most likely key points of retracement, which is conducive to "strategic position raising" judgment combined with the long-term trend, in the short-term trend of high throw low suction, the general success rate is still relatively high human manipulation factors are more complex large institutions often want to capture, obviously rising trend, it is biased hard to suppress the market is often huge at this time, the opposite direction, large stop-loss operation can sometimes, institutions like to play with fire quotes jumping up and down, this does not exclude large institutions have differences on the trend at this time, short positions and wait and see is better, more or less vulnerable to losses