Trading Strategy Guide

Successful trading requires a comprehensive strategy system and strict risk management. This guide will introduce common trading strategies and practical techniques.

Strategy Basics

1. Strategy Types

   • Trend following strategies
   • Reversal trading strategies
   • Arbitrage strategies
   • Market making strategies
   • Combined strategies

2. Strategy Elements

   • Entry conditions
   • Exit conditions
   • Position management
   • Risk control
   • Fund management

3. Strategy Evaluation

   • Win rate analysis
   • Risk/reward ratio
   • Maximum drawdown
   • Sharpe ratio
   • Return stability

Trend Following Strategies

1. Trend Identification

   • Moving averages
   • Trend line analysis
   • Breakout confirmation
   • Momentum indicators

2. Entry Techniques

   • Breakout entry
   • Pullback entry
   • Indicator confirmation
   • Volume confirmation

3. Stop Loss and Take Profit

   • Trailing stop
   • Profit protection
   • Scaled exit
   • Trend end confirmation

Reversal Trading Strategies

1. Reversal Signals

   • Overbought/Oversold
   • Divergence patterns
   • Support/Resistance
   • Market sentiment

2. Confirmation Methods

   • Multiple timeframe analysis
   • Volume confirmation
   • Pattern confirmation
   • Indicator convergence

3. Risk Control

   • Strict stop loss
   • Position sizing
   • Gradual position building
   • Quick profit taking

Arbitrage Strategies

1. DEX Arbitrage

   • Cross-exchange arbitrage
   • Triangular arbitrage
   • Flash loan arbitrage
   • Liquidation arbitrage

2. Opportunity Identification

   • Price spread monitoring
   • Liquidity analysis
   • Arbitrage space calculation
   • Cost estimation

3. Execution Optimization

   • Path optimization
   • Slippage control
   • Timing selection
   • MEV protection

Market Making Strategies

1. Liquidity Provision

   • Price range selection
   • Fund allocation
   • Rebalancing strategy
   • Fee optimization

2. Risk Management

   • Impermanent loss control
   • Price volatility protection
   • Liquidity monitoring
   • Emergency withdrawal mechanism

3. Yield Optimization

   • Fee revenue
   • Reward earnings
   • Portfolio optimization
   • Cost control

Combined Strategies

1. Strategy Combination

   • Multi-strategy configuration
   • Correlation analysis
   • Risk diversification
   • Return optimization

2. Fund Allocation

   • Strategy weighting
   • Dynamic adjustment
   • Rebalancing mechanism
   • Risk budgeting

3. Overall Management

   • Strategy monitoring
   • Performance evaluation
   • Continuous optimization
   • Risk control

Risk Management

1. Risk Types

   • Market risk
   • Liquidity risk
   • Operational risk
   • Systemic risk

2. Risk Control Methods

   • Stop loss setting
   • Position control
   • Diversification
   • Hedging strategies

3. Risk Assessment

   • Stress testing
   • Scenario analysis
   • Risk metrics
   • Continuous monitoring

Strategy Optimization

1. Backtesting Analysis

   • Historical data testing
   • Parameter optimization
   • Robustness testing
   • Overfitting prevention

2. Live Trading Optimization

   • Live performance analysis
   • Strategy adjustment
   • Cost optimization
   • Execution improvement

3. Continuous Development

   • Market adaptation
   • Strategy evolution
   • New opportunity discovery
   • Technical improvement