A list of investment strategies such as trend trading

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First, the free trading strategy

According to the market price changes, free trading can be divided into trend trading and shock trading. The transactions generated by unilateral rising and unilateral falling market are trend transactions, and the transactions generated by the price fluctuation in a certain range are shock transactions. Different transactions have different strategies. Here are some for investors to learn and refer to.

1) Trend trading strategy

① Trend following strategy

Trend-following strategy refers to the trading operation in accordance with the current trend after the trend is about to be/has been determined, such as the upward trend is long and the downward trend is short. This strategy is also called "chasing up and selling down". In fact, trend following is not only a simple "chasing up and selling down", but also a reasonable judgment of the current market trend, through the combination evaluation of indicators such as K-line and moving average in different time periods, to find better points and conduct trend following transactions. For short-term, long-term and band trading, it is necessary to refer to the data indicators and K-line shape trends in different time periods. For different types of traders such as aggressive, stable and safe, there are also different opening opportunities in the same time period, and they need to choose and implement investment ideas according to their actual situation and investment needs. Although trading is in line with the trend, it is also necessary to be alert to the risk of a big change in the market and a reversal of the trend.

② contrarian operation strategy

On the one hand, contrarian operation is contrarian operation when the trend weakens in a certain trend trading, for example, shorting when the rising strength and trend weaken in an upward trend, or doing more when the falling strength and trend weaken in a downward trend; On the other hand, contrarian operation is also contrarian buying and selling/bargain-hunting and escaping from the top in the trend, and also selling when the upward trend weakens, also known as "escaping from the top"; When the downward trend weakens, buying is also called "bargain hunting". Through the perception of the strength of both sides, the strength of the trend is evaluated, and then the corresponding operation against the trend is made. Among them, because of the great risk of contrarian operation, investors need to have a high technical level, pay attention to controlling risks in trading, and reasonably set up take profit and stop loss.

2) shock trading strategy

① heavy form of operation

The characteristic of the volatile market is that the fluctuation signal is not clear, and the currency price changes within a certain range. Although there is little chance of speculation in volatile market, because the market is volatile most of the time, there are many strategies for trading in this market. Through reasonable fund management and strict implementation according to the system, we can also make profits in volatile market. In this market, a relatively complete trading system is needed, and trading operations pay more attention to morphological indicators. There are many strategies that can be used, such as short-term trading with high leverage, or band trading with low leverage, or completely deleveraging and only spot trading, or even directly giving up trading and holding spot waiting opportunities.

② Breakthrough strategy

There are also key positions in the volatile market, and the strategy of chasing up and selling down is not applicable, which often brings more heavy losses. At the important time from shock to trend formation, we can seize the opportunity to trade and wait for the continuation of the current trend until the unilateral market is fully formed by breaking through the indicators such as the previous high and the daily line. In the breakthrough strategy, we need to pay attention to the setting of stop loss. If the signal is wrong and we can't stop loss, it will easily bring great losses.

Second, the neutral trading strategy (super-chain low-risk strategy column)

In addition to free trading, there are many effective neutral trading strategies in the market, which have the characteristics of low risk and stable returns. No matter in the volatile market with small speculative opportunities or in the trend market with large fluctuations and high risks, you can choose neutral trading to ensure a certain rate of return.

1) Arbitrage strategy

The essence of arbitrage is to follow the principle of "market neutrality" in the investment trading market and obtain risk-free returns through various methods, which is regarded as a stable and value-added investment method. Arbitrage earns mostly spreads, interest, etc., and the principal is not affected, so it is also called unprofitable arbitrage. Arbitrage has become a favored investment method for many investors because of its extremely low investment risk and considerable income when the amount of funds is large. Due to the complete variety of products traded in the cryptocurrency market and the immature market, there are many arbitrage opportunities, such as spot arbitrage, capital fee arbitrage, intertemporal arbitrage, grid arbitrage, bifurcation arbitrage and so on. Investors can seize the market opportunity to choose a better arbitrage method through the arbitrage data of Ouyi OKX.

2) the strategy of saving money and earning interest.

There are also loans in the cryptocurrency market, and users can earn interest income by lending their digital assets. Compared with direct investment, the risk is lower and the income is stable. Especially for users with cryptocurrency in their hands and general risk tolerance, it is a good investment way to increase passive income by using cryptocurrency. Ouyi OKX provides users with the service of making money in encrypted currencies such as USDT. Users can achieve the investment goal of saving money and earning risk-free and stable income through various products such as spare money treasure, lock warehouse mining and C2C lending.

Third, other trading strategies

1) Value investment strategy

Value investment focuses on the value of the currency itself rather than the change of the currency price. By understanding the ecological background of the currency community, analyzing the historical price data, the popularity and market value of the currency in the market, we choose the investment target and make value investment. There are three main directions for the currency of value investment: one is the mainstream currency when the market price is low, the other is the cottage currency with a certain market value and fan base, and the third is the new project token innovated on the existing blockchain technology. No matter what kind of cryptocurrency is invested in value, it is bought when its currency price is relatively low, and it is generally a spot investment. For the third kind of new project tokens, it is necessary to be alert to whether they have value to rely on, whether they are air projects, and invest cautiously.

2) Take profit and stop loss strategy

Take profit and stop loss is a very important strategy in various environments described above. As the name implies, take profit means that when it is still profitable and may continue to be profitable, but it has reached the target price, the pending shipment will take profit. Stop loss is to stop the loss by hanging the order at the price that can bear the risk loss at the time of loss. Take profit and stop loss are very practical trading strategies in various scenarios, such as uncertain market and little trading experience. When making profits, you should be vigilant to control risks to prevent profits from turning into losses, and when making losses, you can keep calm and stop losses in time to prevent losses from expanding. When using this strategy, we especially rely on the technical indicators such as K-line shape to find the best point in key positions such as pressure level and resistance level.

3) Diversification of investment

The famous investment saying "Don't put your eggs in one basket, but don't put them in too many baskets" is deeply rooted in every investor's mind. Through diversified investment, choose multiple targets, and make use of the risk and income differences of different assets to reduce the overall investment risk and obtain more stable investment income. However, there is a limit to diversification, and you can't invest too many targets. When the currency of the same type and the trend of currency price change is very close, you can complete the investment by choosing a cryptocurrency to invest. How new users can configure their own can refer to "Three Minutes to Teach You to Configure Assets".

4) Hedging investment strategy

Risk hedging is also a common strategy in various financial market sectors. It refers to hedging the potential loss risk of the underlying assets by investing in or buying assets or derivatives that are negatively related to income fluctuations. In the cryptocurrency market, it can be divided into two categories: complete hedging and incomplete hedging. Complete hedging has no risk of loss but no possibility of gain. It is often used when the environment and trend signals such as fund rate are unclear and waiting for opportunities. Incomplete hedging, that is, incomplete hedging in terms of quantity and so on, has the phenomenon that the risk of loss is greater or the income may be greater, and is often used in the spot trading of mainstream coins.

Fourth, high-frequency trading

High-frequency trading refers to high-frequency trading, which is carried out in a very short period of time and a large number of transactions are completed frequently.

1) Quantitative trading strategy

Quantitative trading strategy refers to a strategy of making a certain trading strategy through "high probability events" such as historical data and historical graphics, building a system model according to the strategy, and completing a large number of transactions by computer technology. After the strategy is determined by a more reasonable strategy, the transaction is carried out in strict accordance with the strategy to avoid the emotional fluctuation of investors in the face of constantly fluctuating currency prices, and the computer system makes rational investment judgments and conducts transactions. The core of quantitative trading strategy is scientific trading strategy, which is a scientific strategy that is verified by fitting historical data graphs. It is necessary to avoid risks in extreme market as much as possible and ensure that profits are greater than losses, and then complete investment ideas through external systems.

2) Grid trading strategy

Grid trading is also a kind of quantitative trading, which is widely used because of its simple strategy and suitable for most of the volatile market. Its core strategy is to arrange a huge "fishing net" in the trading environment under the volatile market, and use the market fluctuation to sell low and sell high in the grid interval to earn the difference. The setting of the grid can be large or small. If the grid is too large, it needs to bear greater risks brought by extreme market conditions. If the grid is too small, the risk is greatly reduced, but the transaction fee cost is increased. Grid is more suitable for volatile market, and it is necessary to choose suitable targets. Counterfeit coins that may collapse and currencies with too small volatility are not suitable as targets for grid trading. In the grid strategy setting, it can be combined with various strategies such as take profit and stop loss, bottom warehouse and grid to ensure the toughness and higher yield of fishing nets.