Introduction: In the stock market crash, several programmable products were restricted from trading, which suddenly triggered a century of thinking in the financial world, what exactly is programmable?
My definition of high-frequency trading is: to intuitively capture as many trading opportunities as possible based on changes in market trends, flash trades, take-price spreads, accumulate less and more, and achieve the goal of overall profitability stability.
The first is intuition; the second is speed; and the third is that the first two methods are aimed at bids, whereas bids are pulsed.
The concept is simple, three seconds of direction. Three seconds of not going in the direction I want to go, eight seconds of not cutting right away, that's the high-frequency habit.
The rhythm in the trade is very crucial, the direction in the process is right, the rhythm is bad, the loss is the same. This is the intuition in the definition, and the definition says that the lightning trade is priceless, since there is no price available in three to five seconds, immediately cut it.
The market is like this, you want it to come back with a little less loss, it makes you lose a lot of money.
Remember not to be subjectively timid as you go up and down.
Remember that when you walk along the path, do not guess at the top, know that the ups are endless and the downs are bottomless.
There are no cheap products on the market, cheap is a trap.
In the operation, it is forbidden to trade against the trend, which is the root cause of huge losses.
In trading, it is important to keep in mind that the middle of the trading session is the safest, which is the essence of trading.
The only way to save yourself is to cut it off, and cut the back and you can come back.
The two-point stop loss is an ironclad discipline that every high-frequency trader must follow.
In high-frequency trading, pending orders are strictly prohibited, and pending orders imply passive transactions.
One day, whether it is successful or not, you will have to do a daily review.
Every time you make a trade, you have to be prepared, prepare a risk forecast before opening, predict the direction of market trends, and make a trading plan.
In addition, the law prohibits the pursuit of the dead, and prohibits the issuance of arrest warrants.
Sit down on the plate, you will write down the price, be patient, wait for the seat.
When making a trading plan, pay attention to keep in mind the fluctuation space of the market for the day, and to pre-determine the resistance levels, support levels and competition levels of the market during the day, and pay attention to energy changes, i.e. raising or lowering the position, the increase in the holding of more empty positions.
There are trends where you have to be decisive, aggressive, bold and follow the trend, and pay attention to the rhythm; there are no trends where you have to learn to pause and observe, to avoid losses.
In high-risk locations, learn to dodge and avoid the loss of jumps and slips.
I've been watching for decades now and I can tell by the speed of the digital jumps how slow the internet is.
Don't think that high-frequency trading is quick, now day-to-day trading is also called high-frequency trading.
Pay attention to price and unit quantity changes, pay attention to the speed at which prices jump; then try to develop good habits of recording prices, recording transactions.
White sugar, either does not jump or suddenly jumps up, so white sugar can't drive at all.
We have to pay attention to the quantity of units on both sides, the speed of the sweep of the units, the speed of the eating of the units, the speed of the price jump.
The first second you open the account is the wrong one, and there must be enough programs to back off completely.
The most important part of the chart is the daily readings, the size of the price fluctuations, the price moves first, and the quantity is worthwhile.
It's not good to use too many indicators, because the market itself is so complex that you can't judge it with too many complex factors.
We do high-frequency with a special focus on the three combinations of K-lines, so you're going to be dealing with the waste line in the process, which is the line we're going to be filtering out in the previous line.
This is often the reverse of a combination of three K-lines.
I'm going to tell you about high-frequency trading in Japan in six parts.
Part oneThis is also the purpose of trading. Below I will explain how to achieve stable profitability from six aspects.
The first point, when trading, you have to examine the market's trend, colloquially speaking is a rise or fall, I summarize as the hearing time trend, preview the big trend, then grasp the trading opportunity of each wave small trend from the beginning to the main position, pay attention to the sequence, lightning trading. This is a big direction to pay attention to the problem, if the big direction judging wrong, is to lose a lot of money, win a little money.
Secondly, as mentioned above, you can't make a profit because there's discipline in high-frequency trading. Our concept is very simple, three-second orientation. Three seconds without going in the direction I want to go, endure for eight seconds, and then don't cut right away, this is the habit of high-frequency trading. So the rhythm in trading is very important, the direction in the process is right, the rhythm is not good, it looks like a loss. This is our intuition in the definition of sweeping, and the definition of lightning trading.
Thirdly, in the way of ups and downs, remember not to speculate subjectively, like last week's PTA fell from about 14,000 to 13,000, in just two or three days it fell 1,000 points, someone guessed that the bottom of it was about 13,000, the result was a stop, and at night you are still hesitating. So remember when you walk along the trend, do not speculate, know that the ups and downs are endless. For example, the most recent PTA fell to 4600, already below the cost price, the cost of PTA is about 4800, small businesses are about 5,000, some people are surprised that it fell too much, so in fact the market is not cheap, cheap is a trap.
Fourth, in addition to the above techniques, the trading mentality is also particularly important. I have said a joke: look at the vegetables, eat, and trade with a normal mind. It is very simple, we are ordinary people, we should do business with a normal mind. If today the market allows you to make some money, we are not hospitable; if today the market does not have a chance, it is always in the crosshairs, then you think it is impossible to win a lot of money.
The fifth point, being a one-minute level high-frequency operator, I say high frequency here refers to the ultra-high frequency of 50, 60 times a day in one direction, if the market is strong, the fluctuations are not large, the discount is true, 100 times is also possible. Two-point stop loss is the iron discipline that every high-frequency trader must perform, these two points are related to our trading methods and habits. For example, it is five points one jump, assuming there are now two prices 25, 26, if we are more open, will not open to buyers, to open to sellers, that is, to open to 25, which means to guarantee a millisecond open position.
Sixth, one day down, whether successful or not, you have to do a daily reversal. Just a few friends said, now in the trade especially IC slippage is a lot, then you in the reversal time, you have to master your big point position, the time of the opening of the trade, and then look at the combination of four or five k lines before and after this node. For example, hey, you open a lot of orders here, then instantly 60 jump to 30, 20, you just put this line k integration study, and then you will encounter the same situation, etc. You will open, you will be.
Part twoNow that we know about the high-frequency earning techniques of the day, we will explain below how to avoid risk and reduce the cost of tuition fees. In fact, the things we should be aware of during the day-to-day checkout process are the reverse of the above-mentioned few points.
First, every time you make a trade, you have to be prepared, to make a good risk forecast before the opening, to predict the direction of the market trend, to make a good trading plan. For example, I sometimes take a newbie, I look at the shape of the closing from two to three in the afternoon yesterday, I can basically estimate what the opening price is today, and will not jump up and down. If he opens the spectrum, we can predict later to observe the trend of the market in line with your prediction, if consistent, bold points, put a weight; if you can also do it outside of the prediction, grab a clearer trend, do it carefully, because there is a market and your idea is coming out. So do a good analysis, predict, how your plan and the market will meet.
Secondly, ban on chasing down, ban on being set against the single. This point I will not narrate too much, because in the previous trading method it was said in great detail. Again emphasize that because it is taboo to do trading chasing down, in the current market, your opponent's mentality is good, a little profit has come out, I checked the holding structure that began last year, many people on the main runway on both sides of the hold, both sides are locked, we call it very hard pressed.
Third, when making trading plans, pay attention to the volatility of the day's market space, and to predict the resistance, support and competition points of the market during the day, focusing on the energy changes, i.e. up or down, over-holding, over-holding, this is very important. If you want to predict the support of the day's market, first of all, you need to know about this variety, such as its daily trading volume, how much is its average volatility space.
Fourthly, I have many students who have a hard time overcoming this problem, and they have to do it boldly and aggressively along the direction of the trend, and pay attention to the rhythm; without the trend, they have to learn to observe and avoid losses. There is a general phenomenon among my students that the trend is stuck, and they feel that the change is too fast, too exciting, too unbearable, but remember that this is also an opportunity to make money, as long as you strictly control your stop loss, you will profit. But once you have a trend, one wave of a trend, he realizes that he wants to slow down and will not lose, Bob.
Fifth, learn to avoid the risky position and avoid the loss of flashes and slippages. I have collected all the graphics of the previous flashes and slippages, and when you re-set, you collect the graphics that you encounter, add up to more and become an experience.
Part threeWe have learned the techniques and the precautions to make money, and now we are going to trade, and like the warrior, your equipment is very important. Our equipment is the tool of checkout, which is divided into two parts: trading software and trading software.
In terms of trading software, there are a lot of friends who have just been listening to a lecture asking me, how speed and network speed are paired, and we'll start again, I'm going to test, I'm going to see a bit of digital jump speed now, I know how much the internet speed is delayed, because I've seen it for a decade. You have to be careful when choosing a trading software, you have to be careful that your trading method is to determine your trading rhythm according to the existing network speed. Very simply, if you have the courage to attack with a turret and an American weapon, even if you have the courage to attack, you tend to die. Likewise, you have excellent equipment, but you don't have the courage to attack, and also the white fee.
In addition to determining the trading rhythm based on the network speed, there is also a choice of k-line graphic cycle; as we do with ultra-high frequency, generally 15 seconds combined for 1 minute, the maximum viewing time is 3 minutes. If your network conditions do not allow you to do it with technology, there is also a medium frequency in the high frequency, do twenty-thirty times a day, and low frequency only two or three times a day, if there is no opportunity, do not go in, you are not guaranteed to lose money. If you do the medium frequency, my habit is 3 minutes with 15 minutes, then with 1 hour, these k-lines are also combined according to your trading rhythm, because high frequency 15 seconds is the trading basis, 1 minute is the processing basis, 3 minutes is the direction basis.
In terms of trading software, we often use Yangzhou's EasyPay and CTP, first of all to pay attention to price and volume changes, pay attention to the speed of price jump; secondly to try to develop good habits of recording prices, recording transactions. My players are early in the habit of using EasyPay, EasyPay. There are many things on the forehead, some people do not do it often, in fact, it is very simple to read the plate is a look at the price, two views of the change.
At the same time we have to pay attention to the two sides of the unit, the speed of the slide, the speed of the slide, the speed of the price jump. For example, the pump is now starting to jump, the k line next to it is going up, the price jumps to 2055 and 2060 suddenly reverses to 2050 and 2055 and then flips up and jumps again, this is the symbol of resistance. The price of this position must be remembered, as long as it goes down to a circle and comes 2060 mm without hesitation fly past, at least jump up to three or four to jump, eat a single, the slide is finished.
Part fourAll the equipment is almost, the next key is the choice of the variety. First, the variety to be active, is to have enough room to fluctuate. Except for the market last Tuesday to Thursday, the normal small market is now basically around 1.2% to 1.5%. For example, the big contract, copper is now 40,000 pieces, its 1% is 400 points of fluctuation, 1.5% is 600 points of fluctuation. Small contracts are like soup now more than 2000 pieces, it also has a daily fluctuation of 20,30.
Part five, the technique of manual high-frequency trading. The technique of the discounted view, many people look at the discounted price more attention to the fall, but I can only do the number in my mind, the most important thing is to look at the daily view, see the magnitude of the price fluctuation, the price moves first, the quantity is price. If the quantity rises, is unstable.
About the K-line market cycle graphics combination, technical indicator application, I have already said in the previous market software. Many people use a lot of technical indicators, my experience is that too many indicators are not good, because the market itself is already complex enough, you use many more complex factors to judge it, you will only get more confused. I use fewer technical indicators, uni-line system, average price system definitely want to see, I focus on the combination of uni-line array, this is my understanding of a situation.
For example, a combination of three graphs, the front one just went down, the back one jumped out, the back one jumped out, and the front one was the slide, but there is a phenomenon worth noting that it is much higher and then much lower, on the front one slide closing price, for example, the front one slide closing price is 20, the back one slide one, 30 jumps, the slide closing at 15, this combination point, for example, the first slide opening price is 100, the second slide opening price is 15, the second slide closing price is 10, the third slide opening price is 20, the front one just went down, and the back one slide closing price is 20, but this combination of two stages in front is the slide closing, the bottom two stages are the stage closing price, someone thought that this would happen backwards and forwards, if we do a high turn on the front one slide closing price error. We need to do a high turn on the front one slide closing price.
The identification of the trend, is that when you are on the way up, every time you are touching the front high, hold the single dead, in fact you do not need to be afraid, even if you step too deeply, you do not need to worry, but this step is premised, you must break the previous low position that started the trend, and then it will lift up to the previous high, and cause an alarm. For example, you are very simple, very simple to break the previous low, walk in front of the low near people, reverse the previous low seal it again, open a small store in the position near the front seal, and then open the second point in the first position, add the stake, guarantee profit, because two, the high trend has moved, the two low points have also moved.
The last partLet's talk about how to get a winning trade. The sequential operation, which has been told to everyone very clearly in the first part, and the pedal rhythm and sequential operation can actually be bundled together. Recently someone asked me about my thumb, saying it's difficult to do, it's actually very simple, the thumb falls, you watch carefully, it raises a plate, the first side table doesn't fall too fast, the second side table is also in a hurry, until it doesn't come up a step, open it flat, you open it lightly, it doesn't come down one by one. It's like during the day it's in a rebound, look at it too softly, feel the opportunity has come, he's falling too fast.