Method fixed ctopov


We offer our readers an article - a report on the experiments carried out to establish a new trading method. The essence of the method is that the open position is automatically set stops losses and gains, and the closure is made only in the event of one of them.

Formats market vision

It is considered that there are three main methods of analysis of financial markets, which are used for trading: fundamental analysis, technical analysis and intuitive approach to the analysis. Fundamental analysis studies the movement of prices at the macroeconomic level, but determining the specific point of the transaction it is not enough. To do this, use technical analysis based on the hypothesis that market prices reflect the desires and actions of all market participants.

It is based on three main principles.

1. The course addresses all. The essence of this statement is that any factor that affects the price, - economic, political or psychological - is already accepted by the market and is included in the price. Therefore the study of the price chart - all that is required to predict.

2. Price moves in one direction. This assumption is the basis for trend analysis, and is the core of all the technical apparatus. There are three types of trends:

- <Uptrend> - prices go up,

- <Bearish> - prices move down

- <Sideways> - no specific price movement neither up nor down.

To trend applies basic laws of motion, such as:

- The current trend is more likely to last than to change direction, or

- The trend will move in the same direction until it loosens.

3. History repeats itself. The meaning of this postulate is that the rules that were in effect in the past - there are now and in the future. Intuitive approach to the analysis of a small number of professed traders and typically does not lead to long-term success. Even with the use of technical analysis are experiencing a situation where the two investors, using the same software, and watching on a computer monitor are the same signals, take diametrically opposed solutions. The reason for this phenomenon - a subjective evaluation of the perceived information (this does not mean that in the long term, both will be in the red).

Without downplaying the effective use of all the features of these approaches, the author intends to offer another method of trading in the stock markets, the investor is able to eliminate the subjectivity that affects the quality of decisions.

Impartial fixer

The method is based on the following:

-No one can predict the price change in the next moment. Therefore, any entry into the market is a risk, the simplest way to reduce that - increased ratio of stop-loss: stop-profit to 1:2-1:5 with obligatory closing position when the one of the boundaries.

- The prices in the stock markets most of the time are in the trends.

- Compliance with the basic rules of risk management for managing capital (maximum loss in a single transaction, and the maximum amount of investment in one single transaction, the maximum level of loss of capital, etc.) are enough to make a profit from financial transactions in the stock market.