How to set stop loss and take profit in futures?

1. Stop loss and take profit at support level or pressure level, that is, buy and open positions at support level, take profit and close positions at pressure level, and fall below support level after buying.

Stop loss, and vice versa. This is the most commonly used stop-loss and profit-taking method in futures trading, which is suitable for all trading strategies such as intraday, short-term, band and medium-long term. The premise of using this method is to judge the support and pressure comprehensively and accurately.

2. Using the amount of funds as a stop loss means clearly planning how many points to lose as a stop loss before each entry transaction. This is a good fund management method, but the premise is that traders must have a winning rate higher than 60%, and at the same time ensure that the total profit point is higher than the total stop loss point. For example, if you operate 10 times a month, you gain 6 times, stop loss 4 times, the total profit is 600 points, and the total loss of stop loss is 200 points, then the result must be to win. How to obtain this profit model, first of all, we should use the risk-return ratio (generally 1: 3) to find the model, second, we should deeply understand the fluctuation of market operation, and third, we should make a comprehensive judgment on market trends such as trend direction, trend type and trend development period.

3. Stop loss with indicators. This indicator does not refer to the indicators provided by the software, such as RSI and MACD. Instead, it means that traders design their own indicators according to price, quantity, energy and time, and then trade according to their own indicators. When the indicator no longer has a trading signal, he immediately stops or quits trading. Stop loss with index is mainly used for programmed traders or traders. Its advantage is that it can overcome the weakness of human nature. As long as the indicator has no signal to buy or sell again, there is no reason or reason to continue doing business in the market. You need to stop profit or stop loss immediately and wait for the next opportunity. However, the application premise is that traders must determine the implementation details of the signal, that is, they must know in advance whether to use the closing price as a signal or the intraday price as a signal. Many traders don't take this into account when using index trading, so they often can't follow the signal or lose money.

4. Stop loss with time. This method is mainly used for intra-day ultra-short trading mode. Intra-day ultra-short mode refers to the trading mode in which traders hold positions for as few as a few seconds and as many as a few minutes in order to obtain the price difference of several or dozens points in a certain period or part. For this model, the trading principle is to make use of the influence of some factors, such as the influence of the external market, the breakthrough and false breakthrough of the support level and pressure level in the market, and the sudden news, to make a profit in the case of sudden and large fluctuations. Its advantage is that when the judgment is correct, it can gain profits instantly, even excess profits; When you make a mistake, you can get away with it. Its disadvantage is that it is not suitable for novice or part-time traders. Because it requires traders to have good reaction ability, be able to quickly assess the general atmosphere and potential direction of the market, and always pay attention to the market, especially when holding positions.

Support refers to the area where demand is concentrated, that is, the gathering area of potential purchasing power. Because the demand in this area is strong enough to prevent the price from falling further. It can also be understood that when the price reaches this area, it looks very cheap, so buyers are more inclined to buy, while sellers are reluctant to sell, so demand begins to exceed supply.

Pressure refers to the area where supply is concentrated, and when the price reaches this area, the seller's power will appear. Because the selling pressure in this area is strong enough to prevent the price from rising further. When the price reaches this area, the seller is more willing to sell, while the buyer's willingness to buy is weakened, so the supply exceeds demand and the price cannot continue to rise.

The pressure support on the K line includes: intensive transaction area, early high and low points, price type, trend line, moving average and so on.

Pressure support on time-sharing chart: yesterday's closing price, highest price, lowest price, settlement price, today's opening price, average price, intraday high and low points, etc.

The advantage of this method is that it can make the setting of stop loss and take profit follow the fluctuation of the market as much as possible. The disadvantage is that there are many users, so there are often false breakthroughs. Therefore, when applying this method, we should be able to identify the trap and re-enter the market according to the new signal after exiting the market.