This year's S3 #DooTrader Charity Cup Global Trading Competition has entered a feverish stage, and the second round of competition is about to sprint, and all players are gearing up to win the final generous prize money. Currently, the leading players adjust their strategies and positions to maintain their ranking advantage. We have seen that the TOP 1 players in the classic group have created a super high rate of return of 1,300% at this stage; the sprint players are also working hard, hoping to win a seat in the TOP ranking. In order to help players find the trading direction that suits them, and cheer for the struggling players together. Today we invited the champion of the first round, Mr. Liao, to share his winning strategy with the players.
Separate life from transactions and control risks
Relying on the good trading sense cultivated by years of trading experience, with an impromptu operation, one of our contestants earned $1,500, and the final yield reached nearly 900%, winning the S3 #DooTrader Charity Cup Global Trading The champion laurel of the classic group of the first round of the competition.
This player is the protagonist we are sharing today - Liao Xin. He entered the trading industry in 2013, has rich experience in the industry, and also has his own unique risk control management mechanism and systematic strategies. Although he said that there was an element of luck in the high returns this time, we also saw his excellent trading skills during the conversation, and he accurately grasped the timing of entering the market. Next, let's start today's winning sharing.
Trader Introduction
# DooTrader contestant: Mr. Liao Xin
Trading qualifications: Entered the market in 2013 and has been trading full-time for many years
Trading motto: "Trading is 70% mentality, 20% technology, and 10% luck."
interview content
Doo Prime : First of all, congratulations on winning the first place in the classic group of the first round. Have you received the $5,000 bonus?
Mr. Liao: It has been received.
Doo Prime : I took a look at your transaction records, first of all, why do you almost have only stop profit and no stop loss during the competition period? I'm particularly curious about this.
Mr. Liao: My risk control is like this. I will watch the stop loss. If it loses money, I may re-enter it; mentality.
Doo Prime : In many trading books and forums, the importance of stop loss is emphasized, and some people even think that stop loss is the core of trading. What do you think about this point of view?
Mr. Liao: It is true that stop loss is the core of trading, but it must be based on position control. I use the number of trading lots to control. If the position is not large, even if the market fluctuates greatly, you may be unlucky and lose a lot of money. But it doesn't necessarily mean that there is a problem with your position, unless you have a heavy or full position, your mentality will be very nervous; if the position is small, in fact, this order will not have any impact on the system.
Doo Prime : In your risk control system, in addition to fixed stop loss, you are still using positions to control profit and loss, right?
Mr. Liao: Yes, I mainly use positions to control profit and loss, rather than hard stop loss. Often it will just be wiped out, and you will lose your chance.
Doo Prime : After you started making a profit in the game, you did not enlarge your position with the growth of your net worth like other traders. I think your trading positions are generally small, and most of them are 0.1 lots .
Mr. Liao: Yes, I operate according to this position. I originally wanted to take a little heavy position, but later I thought it was unnecessary. Anyway, depending on my luck, I still operated as usual.
Doo Prime : Although the position is small, your profit per order is very large. You seem to fix 6 to 7 orders every day, which is probably a trend trader. Why do you choose this trend for long-term trading now?
Mr. Liao: Actually not. This is a matter of strategy. One account has one strategy. For example, I use this account for long-term and one account for short-term. Separate management is better, and I don’t look at floating losses or the overall amount of money. Changes that affect your attitude. The account I participated in this time happened to be a middle line.
Doo Prime : Have you compared the difference in long-term and short-term returns between these two types?
Mr. Liao: In fact, each has its own advantages. If you are in the medium and long term, you must maintain points, earn enough, and have a good profit-loss ratio to be profitable; if you are in the short-term, the pursuit is the winning rate.
Doo Prime : But your long-term account win rate is also very high, I think almost all profitable orders.
Mr. Liao: Because the time of this trading competition is relatively short, there may be a certain element of luck. Anyway, my own trading philosophy is 70% mentality, 20% technology, and 10% luck . It is not often said that luck is also part of strength.
Doo Prime : Your long-term account position may be relatively small, will your short-term account position be slightly larger?
Mr. Liao: The short-term position will definitely be slightly larger, otherwise there will be no profit. To do short-term trading, you must either have a small amount and a high frequency; or you must have a large amount and a low frequency to make money.
Doo Prime : As for the winning rate mentioned earlier, your long-term account winning rate can be so high, what are the commonly used technical indicators in judging entry and exit?
Mr. Liao: I generally like to use the expansion of Fibonacci, and then add some top-bottom support pressure, combined with the reaction of the market at that time, and then judge the timing of entering the market.
Doo Prime : What is your cycle of opening and exiting positions?
Mr. Liao: My account for participating in the competition is one hour.
Doo Prime : What do you usually rely on to make decisions?
Mr. Liao: I usually look for a big trend. If I follow the trend, I will choose a relatively extreme point, and then do it in conjunction with the Fibonacci point. I usually do a reversal and follow the trend a bit less.
Doo Prime : Do you choose to enter the market when your technical indicators are over-inflated or over-low in terms of reversal or extreme points, and it does not fall or rise?
Mr. Liao: No, for example, draw a Fibonacci in a range from the bottom to the top, and generally enter the market at the position of 61.8 or 1.618. When I play, I cooperate with the expansion of Fibonacci to play, and the appearance is generally 100% of the position.
Doo Prime : Besides Fibonacci, do you have other indicators to refer to?
Mr. Liao: There are also some trend lines. I usually don’t look at indicators. I will use trend lines or harpoon lines as a match to find some suspected reversal points.
Doo Prime : I also mentioned EA just now . Now there are fewer and fewer manual and subjective traders like you. What do you think about this?
Mr. Liao: In fact, I also use EA, but the account that participated in the competition happened to be unused. EA is relatively safe, but I consider that the trading time is relatively short, and if the ranking is done in a few weeks, the rate of return of using EA will definitely not meet the standard for ranking, so I am useless unless the game time is shortened. a little longer.
Doo Prime : You also do it manually and EA , can you compare the difference in the use of these two trading methods?
Mr. Liao: If you are doing EA, the execution ability is definitely many times better than that of manual labor. It is fixed and there will be no emotional judgment. As long as you run through the historical retracement, it is definitely safe enough and the risk is controllable Within the range, you can use EA with confidence.
I personally think that EA is actually better than manual work, because manual work will change your mentality, and every order you make is actually suffering in your heart, but EA does not, which is also its advantage.
Doo Prime : Many people are now turning to EA . The advantage of EA is, as you just said, that it is more thorough in execution than manual trading. However, many people do not seem to take advantage of the subjective trading advantages of manual trading.
Mr. Liao: Because the most important thing to control is people. Why does EA lose money? I summed up my experience. When the market does not match its trading strategy, he will give up or intervene in the next order in advance ; it will also be affected by some external factors, such as If there is something to go out, the system is turned off in advance; it is also possible that if the big data comes and it is not turned off, the system will cause losses; in addition, there are traders who are too confident in their system, and the initial lot The ratio is very high , and this one will definitely not live long.
In addition, there are many types, such as trends, scalps, and Martins. These actually need to consider the risks of each strategy . Being a Martin means position management or risk control management, or you have to avoid big data.
Doo Prime : There are also many traders using Martin now.
Mr. Liao: Because Martin has one advantage, he can see the money every day, and he is not sure which day he will liquidate his position. This is the charm of Martin. But to calculate how much money Martin will lose when he loses, just control it as the biggest retracement .
Doo Prime : How do you evaluate arbitrage EAs like Jiying ? Can you rate it?
Mr. Liao: It essentially puts aside the U.S. dollar, that is, it removes the U.S. dollar attribute. In fact, it is a cross between the Canadian dollar and the Norwegian krone. An attribute of increasing positions, that is to say, it is a currency similar to the Australian dollar against New York. It has an advantage that the position control is better, so it can maintain profitability. In fact, I have also paid attention to this strategy, and it is also good.
Doo Prime : Too many EAs are used now , do you think manual trading will be completely replaced by EAs in the future ?
Mr. Liao: No, EA needs to be constantly updated and optimized. It is impossible for a strategy to be applicable forever, and it must be artificially improved.
Doo Prime : Just now let you introduce your trading system, can you tell us about your risk control strategy? How do you usually use positions to control the overall risk? Just keep trying with small positions?
Mr. Liao: No, I will calculate the leverage ratio. Generally, it is controlled below 20 times or 30 times. I calculate the position according to the leverage.
Doo Prime : No wonder your positions are relatively small for such a large account. At the beginning of the game, it was 1000 times, and when $1,000 was entered, it was all around 0.1 .
Mr. Liao: In the early stage, because I wanted to get the ranking, it must be a little bit heavier; later, I saw that the rate of return was slowly increasing, so I didn't want to lose the ranking.
Doo Prime : The largest transaction in your trading history is particularly abrupt, because the other positions are relatively small, but the two-handed short gold position is very large, and this transaction made a profit of nearly $1,500 at once . You Remember why you suddenly made such a large investment at that time?
Mr. Liao: It seems to be on September 20th. At that time, I was sure that it would go down. This order was actually a short-term order I made temporarily.
Doo Prime : This one is very well done.
Mr. Liao: It is also to cultivate the sense of trading, and the time is relatively short. This order should be from the opening to the closing of the position, and basically I have not had any floating losses. At that time, I should have been staring at it, not daring to let it run by itself like the 0.1 lists.
Doo Prime : Let’s talk about your trading story now. When did you start your business?
Mr. Liao: I was in college in 2013. At that time, I was new to the currency circle, because the threshold was relatively low, and I probably didn’t do much work in the company after graduating from university. Anyway, I traded for a living every day.
Doo Prime : Full-time is the dream of many traders.
Mr. Liao: A full-time job depends on the sky, but you still need to have other income. For example, if you do economic business, you can maintain a normal life when you are in a downturn.
Doo Prime : In fact, being a trader is a very lonely business. Have you ever communicated with your friends, or have your friends traded with you?
Mr. Liao: I don’t have any friends around me. More than 90% of those who do this are netizens, and then become friends through netizens. There are very few students, relatives, or friends who do business.
Doo Prime : From 2013 to now, have you ever experienced a trough where you lost a lot?
Mr. Liao: I remember that in 2020, there was a wave of crude oil falling into negative numbers. I was very impressed. I started to build positions at about 20/30, and then reached the next hundred thousand. Probably when it fell to 45, the bullets were almost out. I didn't expect this situation to happen in the market.
Another time was the flash crash of the British pound in 2015, which is still fresh in my memory.
Doo Prime : Did you lose money during the 2015 pound crash? How did you get out of the trough?
Mr. Liao: I lost tens of thousands of dollars that time.
The low point is actually quite serious. I just don’t think about food and drink, regretting every day, and even want to give up this industry, feeling that I am always a leek. After a period of time, I found that I was not familiar with other industries, and I couldn't make myself stand at the same height as before. Later, I gradually built up my confidence with small funds.
Generally speaking, if you work full-time, you will encounter this kind of financial crisis many times. Every time you encounter it, you will put a little more reserve fund for yourself.
Doo Prime : What was the greatest value or reflection brought to you by the negative oil price event?
Mr. Liao: I am in awe of the market. Anything can happen in this market . Everything may disappear overnight, and position control must be in place.
Doo Prime : Now that you are a full-time trader, do you have any plans for your trading career? For example, setting up an asset management fund or studio?
Mr. Liao: I already have a studio, but my goal now is not to grow big, but to operate steadily.
Doo Prime : Would it be convenient to disclose your monthly yield?
Mr. Liao: Generally, it is 6-12%, and sometimes it is almost 3-4%. If the amount of capital is slightly larger, it will be conservative and not so high.
Doo Prime : We hold the #DooTrader trading competition, in fact, to discover good traders like you and pass on trading ideas. Can you give some advice to traders now?
Mr. Liao: First, never use stress funds for transactions . Stress funds are borrowed money, or the money is money waiting for urgent use. Never use this money for transactions;
Second, take it as soon as you see it, and don’t keep it in the trading account if you earn money . You must withdraw a little within a period of time.
Third, do not confuse trading with life . Whether you lose money in trading or make money, don't affect your life, and don't let your life affect your transaction. If you let your life affect your transaction, you will lose money, which is a vicious circle.
Doo Prime : In fact, this has relatively high requirements for traders' emotional management.
Mr. Liao: Yes, emotional management is very important. We must separate trading from life and maintain a good attitude.
As Mr. Liao expressed in his trading philosophy, mentality accounts for 70% of the influencing factors. Separate life from trading, adjust the status, and do a good job of risk control. I believe that all players can also gain something in the competition and future transactions.
There are still 2 days until the second round of competition registration
The second round of the 2022 S3 #DooTrader Charity Cup Global Trading Competition will end on December 14th, and registration will end on December 1st this Thursday . Please seize the last chance to show your true strength, and at the same time There will also be more opportunities to compete with the industry's masters, and more generous bonuses are waiting for you to compete, seize the opportunity, maybe you are the new #DooTrader star.
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