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Forex multi-account manager Z-X-N
Accepts global forex account operation, investment, and trading
Assists family office investment and autonomous management

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An efficient foreign exchange investment trading system does not aim to achieve profitability in all time periods.

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Instead, it focuses on avoiding losses to the greatest extent possible during most of the time and obtaining substantial profits under a few specific circumstances, thereby achieving the overall profit target. Such a system can accurately identify and firmly grasp the most favorable market trends while discarding other incompatible trends. It should be made clear that there is no trading system that can adapt to all market conditions and maintain a profitable status all the time.
Many foreign exchange investment traders often wrongly assume that an ideal trading system should be omnipotent and at least ensure profitability on a weekly or monthly basis. However, this is actually impossible. A practical and effective trading system can only capture limited market conditions, and its essence is a complex built on the basis of numerous selections and rejections.
The same applies to any foreign exchange investment trading system. Risks are controlled when the expected market conditions have not yet emerged, and profits are obtained when such conditions arrive. However, foreign exchange investment traders cannot accurately predict when the expected market conditions will come. Therefore, the claims of being able to achieve stable profitability on a monthly or weekly basis are unrealistic, and this is essentially relying on luck. Pursuing a perfect foreign exchange investment trading system is a futile effort. Foreign exchange investment traders must have a profound understanding of the meaning of selection. Among numerous systems, only the most useful and suitable ones for themselves should be chosen. Although there is no all-powerful foreign exchange investment trading system, there do exist foreign exchange investment traders who can adapt to various market situations. An excellent trading system is designed in response to price changes, and conforming to market trends is the core element of profitability. No matter what type of system or philosophical concept it is, none can accurately predict the market. The principle of making money remains constant. When subjective trading decisions match objective price movements, profits can be made; otherwise, losses will occur. Stable profitability is the result of the combined action of multiple factors, not merely relying on a trading system with a positive expected value. The ideas and cognitions of the foreign exchange investment traders behind the system determine the success or failure of foreign exchange investment trading to a greater extent.
To achieve stable profitability, foreign exchange investment traders need to formulate and strictly follow a set of standardized trading procedures to guide and restrain their daily trading behaviors. Given the continuous changes in psychology and state as well as the fluctuations in self-control ability, consistency, especially the consistency of execution, is the foundation of stable profitability. Therefore, foreign exchange investment traders need a set of trading procedures to ensure the stability of execution. The trading procedures mentioned here refer to the specific steps and processes that must be followed before making each trading decision, and by no means entering the market impulsively. Ultimately, only foreign exchange investment traders can achieve profitability under any market conditions, and there is no trading system that can adapt to all market conditions and maintain profitability all the time.

In the field of foreign exchange investment trading, the moving average, as an important technical analysis tool, can effectively observe the changing trend of foreign exchange investment trading prices over time.

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The moving average in foreign exchange investment trading is drawn by calculating the average of the closing prices of currency pairs within a specific period of time. The moving average is regarded as the embodiment of the collective behavior of participants in the foreign exchange investment market. Whether they are large investors or small investors, their buying and selling behaviors will have a significant impact on currency prices. Although foreign exchange traders cannot accurately identify the specific entities involved in daily currency trading, as the closing price is public information, large purchases will drive up currency prices, while large sales will cause currency prices to decline. Therefore, the moving average can be considered as the result of the combined force of the foreign exchange investment market and is generally not easily manipulated by a single institution.
In foreign exchange investment trading, the moving average has a unique attraction in that the exchange rate usually fluctuates around it. If the exchange rate is significantly higher than the moving average, most investors who have bought recently are in a profitable position, and they may choose to sell to realize profits, thus causing the exchange rate to fall back to near the moving average. Conversely, if the exchange rate is much lower than the moving average, the currency price appears to be relatively low at this time, which may attract buying orders and push the exchange rate back to near the moving average.
In foreign exchange investment trading, it is difficult to accurately judge the trend of currency pairs with a single moving average. Therefore, foreign exchange traders usually conduct a comparative analysis of two moving averages with different cycles. The moving average with a shorter cycle is called the fast line, and the one with a longer cycle is called the slow line. For example, in the comparison between the 5-day moving average and the 15-day moving average, the 5-day moving average is the fast line and the 15-day moving average is the slow line. By observing the relationship between the fast line and the slow line, foreign exchange traders can analyze the price trend of currency pairs.
When the fast line crosses above the slow line, it indicates that the future trend is bullish.
When the fast line falls back close to the slow line and then rebounds, it shows that the future trend is bullish.
When the fast line crosses below the slow line and then crosses above it again, it implies that the future trend is bullish.
When the slow line is flat and the fast line drops rapidly away from the slow line, the future trend is bullish.
When the fast line crosses below the slow line, it means that the future trend is bearish.
When the fast line rises close to the slow line and then falls back, it displays that the future trend is bearish.
When the fast line crosses above the slow line and then crosses below it again, it suggests that the future trend is bearish.
When the slow line is flat and the fast line rises rapidly away from the slow line, the future trend is bearish.
When the fast line crosses the slow line and they are in the same direction, the exchange rate usually accelerates its movement. When the fast line and the slow line are intertwined with the same direction but in a parallel state, the exchange rate usually moves in parallel. During this period, the only correct approach for mature foreign exchange traders is to wait patiently, remain still, manage their emotions properly, control their mentality strictly, and keep waiting.

In the field of foreign exchange investment trading, the moving average, as a basic tool in technical analysis, is widely known for its simplicity.

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If it is used correctly, it can produce remarkable effects. However, many foreign exchange investment traders often overlook the importance of the moving average and instead pursue more complex combinations of indicators. Before applying any technical indicators, it is crucial to have a clear understanding and thoroughly comprehend the principles behind them. Regarding the phenomena such as the bullish alignment, golden cross, and dead cross of the moving average, the occurrence of the golden cross is not the triggering factor for price increases but rather the manifestation of the result of price increases. The moving average itself does not possess any special magic, but compared with the candlestick chart, it is more effective in presenting market characteristics. The appearance of the golden cross reflects the characteristics of specific candlestick chart trends, and these characteristics can be more easily captured through the moving average, while it is more difficult to accurately grasp them by simply observing the bare candlestick chart.
Technical analysis in foreign exchange investment trading does not have the function of prediction itself. Its main function is classification. Technical indicators are sometimes effective and sometimes ineffective. This is not due to problems with the indicators themselves but rather to improper usage methods. Only from the perspective of classification can technical indicators truly exert their due power. Taking two moving averages as an example, according to their crossover situations, the market state can be divided into three types: golden cross, dead cross, and no crossover, thus classifying all market trends. When opening the price chart, one can immediately determine the current state of the market. However, merely knowing the market state is not sufficient to guide actual operations. Therefore, a core reference point needs to be found. Taking the bullish market as an example, the start of any market trend will prompt the formation of a golden cross in the moving average. This is an indisputable conclusion. Therefore, in the operation of foreign exchange investment trading, foreign exchange investment traders can wait for the appearance of the golden cross and take it as a solid basis for their operations.
Although the start of any market trend will lead to the formation of a golden cross in the moving average, the golden cross of the moving average does not always trigger the start of a market trend. It is a necessary condition rather than a sufficient condition. Therefore, foreign exchange investment traders can further classify the situations of the golden cross of the moving average. Before the start of the foreign exchange investment market, it is bound to be in a state of decline or consolidation, which can be immediately recognized by everyone. In some large-amplitude fluctuations, consolidation may also lead to the appearance of useless golden crosses and dead crosses in the moving average. Wise and mature foreign exchange investment traders should wait patiently and not be lured by profits. They should wait until a solid trend emerges before entering the market for trading.
Foreign exchange investment traders must maintain a clear understanding that it is not the golden cross or dead cross indicators that trigger the major price trend of currency pairs, but rather the major price trend of currency pairs that prompts the confirmation of the golden cross or dead cross indicators. Price is the cause, and the indicator is the result, not the other way around.

In the foreign exchange market, position management is a crucial skill, and its sophistication can be compared to that of art.

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Accurately managing positions plays a key role in avoiding significant losses and maximizing profits. If an investor invests too much money in the initial stage of trading and the market trend goes against expectations, being forced to stop loss is likely to lead to huge losses, which is a big taboo in foreign exchange trading. Conversely, if the initial position is too small, even if the market trend is in line with expectations, the profits will be limited due to the limited position size. Therefore, finding the balance between avoiding significant losses and ensuring profit maximization is a problem that urgently needs to be solved.
The floating profit adding position strategy in foreign exchange trading provides a possible solution to this problem. Initially, investors enter the market with a relatively small position. If the market trend is unfavorable, timely stop loss can effectively limit the losses. If the market trend is favorable, the stop loss point can be moved. Once the stop loss point is higher than the cost price, the transaction enters a risk-free state. At this time, if the opening position signal appears again, the position can be increased, which is what is called floating profit adding position. For each position increase, it should be strictly managed just like a new position: if the market trend is unfavorable, execute the stop loss; if the market trend is favorable, move the stop loss point again. In this way, no matter how many times the position is increased, only the last position increase is at risk, while the previous positions are all in a risk-free state, at most just without making a profit, but without incurring losses. Even if the total position is relatively large, it will not pose a threat because the risk is effectively controlled.
In foreign exchange trading, substantial profits often stem from seizing the opportunity of heavy positions in a certain trend. However, this kind of heavy position is not achieved by taking a heavy position right from the start, which is no different from gambling, but is gradually realized through floating profit adding position. In actual trading, investors also need to abandon outdated foreign exchange investment concepts. Sometimes, for some special currency pairs, floating profit adding position is not always superior to taking a heavy position from the beginning. Especially for those narrow-range and large-fluctuation currency pairs lacking a long-term trend history, they are often used by institutions and investment banks to manipulate ordinary foreign exchange retail investors. If the judgment is correct, the profit is relatively small; if the judgment is wrong, the loss is relatively large. In addition, in the current situation where the market rhythm is extremely fast, floating profit adding position may have difficulty keeping up with the pace of the market. Only in a major trend market can floating profit adding position be successful.
The floating profit adding position strategy in foreign exchange trading originates from fixed position adding, that is, whenever the profit reaches a certain stage, the position same as the initial position is added. Once the drawdown exceeds a certain critical point, all positions are closed out or most of them are liquidated. After breaking through the resistance, as long as the market remains strong, the position should be quickly increased to the maximum and held unchanged. The key here is to add positions quickly and decisively without hesitation.
Some foreign exchange traders hold positions for a relatively long time, focus on weekly charts, and have a broader perspective. They add positions after breaking through the resistance. The success of floating profit adding position is actually closely related to the era when the Internet was not well-developed. In that period, it was indeed appropriate to use the floating profit adding position strategy to maximize profits. However, times have changed. Now, news, messages, and even rumors are flying everywhere. It is difficult to hold positions firmly in foreign exchange trading under such an uncertain and rapidly changing environment.
However, if one doesn't understand floating profit adding position, it will be very difficult for the account profits to grow significantly. Floating profit adding position is the only way for small amounts of capital to grow larger. But before achieving stable profits, please use floating profit adding position with caution because its disadvantages may outweigh its advantages. This is a game for large amounts of foreign exchange investment capital. The floating profit adding position ideas of many small-capital foreign exchange traders are actually wrong and eventually evolve into the Martingale strategy, with one-sided crazy position adding. Once the trend judgment is wrong, the account will directly blow up without any risk control. It should be clearly stated that floating profit adding position is not the Martingale strategy.
The wrong ways of floating profit adding position by foreign exchange traders include: after making a small profit, believing that the market will move towards a large one-sided trend, ignoring the successive resistances and supports on the technical side, and as a result, frequently adding positions within a very small range, adding once every few points, repeating this process continuously, actually taking a heavy position within a narrow range. Another situation is gradually adding positions after making a substantial profit in the early stage. Everything seems good, but once the market rebounds, the profitable orders instantly become break-even or even floating losses. If no positions were added, the orders would originally still be in a profitable state. These two situations will cause great changes in the mentality and emotions of foreign exchange traders.
The correct way of floating profit adding position in foreign exchange trading should be: first, judge the trend of the foreign exchange market, identify the key supports and resistances in the market, then establish an initial position and wait for market fluctuations. If the market trend is in line with expectations, then add positions at the key support or resistance levels next, and it must be at the key positions. There is no need to rush to add positions. Wait for the market to fully test the position, and then follow the upward movement to buy, so that the accuracy rate will be significantly improved.
Will there still be losses if floating profit adding position is carried out in this way? Obviously not. When a large one-sided trend in foreign exchange investment arrives, the account can double directly. When encountering market fluctuations or losses, the risk is controllable, and the principal is retained, keeping oneself in an invincible position. Therefore, in the field of foreign exchange investment trading, it doesn't matter which currency pairs or which technical methods are used. The key lies in the trader. If the trader has the correct trading ability, everything is possible; if the trader doesn't have the correct trading ability, nothing can be done.

In foreign exchange investment and trading, traders need to have a clear understanding of the effectiveness of strategies.

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That is, there is no single strategy that can be applicable to all market trends and time frames. The "adding positions on floating profits" strategy is mainly applicable to the long-term unilateral foreign exchange market trends. Its essence lies in using floating profits as a signal to confirm the judgment of market trends.
For example, if it is predicted that the trend of a certain currency may grow, one can open positions first for observation. If the actual situation of the foreign exchange market does not match the prediction, it is necessary to re-evaluate or close the positions; if it matches the prediction, one can consider adding positions. The essence of adding positions is to further confirm the accuracy of the prediction based on the feedback from the foreign exchange market.
In the field of foreign exchange investment and trading, the "adding positions on floating profits" and the concept of momentum are on different time scales. The "adding positions on floating profits" targets long-term trends, while the concept of momentum is more applicable to short-term markets. In the short-term foreign exchange market, the momentum of bulls and bears dominates price fluctuations, and the "adding positions on floating profits" strategy is not applicable at this time.
In foreign exchange investment and trading, no strategy can perfectly adapt to all trends and time frames. Therefore, before applying a strategy, traders need to accurately predict the market trends and trading time frames. There is no universal secret book in foreign exchange investment and trading. The key to a strategy lies in matching the actual situation of the foreign exchange market.
The difficulty in foreign exchange investment and trading lies in understanding the formulas required by the market and obtaining the correct answers. Many long-term foreign exchange investment traders do not agree with the "adding positions on floating profits" strategy because in the foreign exchange market, most people tend to become losers in the process of following the trend.
The long-cycle upward movement of foreign exchange investment is divided into different stages. In the initial stage, the upward momentum increases, and this is the crucial period for "adding positions on floating profits". However, in the middle and later stages, as the energy weakens, reversals may occur. If reversals are always encountered when adding positions on floating profits, it indicates that there are problems with the entry timing of foreign exchange investment.
There is no absolute distinction between good and bad in foreign exchange investment trading strategies. There is only the difference between suitability and non-suitability. Some foreign exchange investment traders have achieved success through short-term trading operations and other methods. They should focus on understanding their own strategies. "Adding positions on floating profits" is a relatively correct choice, and adding positions can deal with the scarcity of trends.
Relatively speaking, it is more difficult to add positions in the foreign exchange leverage market. Stocks and futures are more suitable for adding positions than foreign exchange. Larger cycles are more suitable for adding positions than smaller cycles. The key issue of "adding positions on floating profits" lies in when to add positions, which depends on whether it is currently a position-opening situation and has no inevitable connection with the existing positions. The movement of market prices has no direct connection with the profits and losses of accounts.

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13711580480@139.com

+86 137 1158 0480

+86 137 1158 0480

+86 137 1158 0480

z.x.n@139.com

Mr. Z-X-N

China · Guangzhou

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