TIP:My native language is not English. The following content is translated by Google. If the translation is not clear, I will explain further. thanks

I started trading in 2017. At that time, my first market was the cryptocurrency market. Within a month, I gained more than 12 times of income. In 2018, I liquidated my position and lost about 70% of my funds.

Then I got involved in foreign exchange trading. Basically, I made a small profit. In 2021, I finally chose the futures market. Obviously, I changed the market continuously because the profit was unsustainable.

I chose German 10-year government bond futures as my first futures trading product from the performance in August and September.

I found that I encountered the same problem again. I have read other articles where losses are divided into "nuclear explosion" and "a thousand cuts", because through my trading experience in the past few years, I can avoid "nuclear explosion" , I carefully control my risk exposure, but at the same time it increases my risk of being "a thousand cuts". I have counted my losses and almost 99% are caused by "a thousand cuts"




When the market fluctuates like this, its range is about 10-13 ticks, and usually the range of a period of FGBL is about 30 ticks. I will fall into this kind of continuous stop-loss trading. The most one day I lost 60 ticks on one contract, but the market after the price breakout often cannot cover my loss.

I think this is a very serious problem. After I have communicated with people I know, almost everyone has this problem. This phenomenon is particularly prominent in financial futures.

Even after breaking through this shock, the price has a large retracement (FGBL 10-15tick or more), I will close the position as soon as possible and then miss a bigger market.


Regarding the handling of shocks and retracements, I cannot continue to profit and maintain consistency. I want to find out if there is a way to deal with this pattern. I am not looking for the holy grail of trading, which does not exist. I think that the profit of trading lies in accumulation. In the trend, I think that everyone’s ability to make money is almost the same. How to reduce losses is the key to profit.

Basically your system is not being able to tell when it's just a noise or a genuine trend reversal and you are exiting prematurely. This is not necessarily phenomena unique to futures market either, happens with everything.

To tackle this you will have to develop the system first, and that is very very user specific. Also, what is significant enough move to define trend reversal is probably going to be bigger mystery to solve for you there, that can be indeed script specific number.

Good luck.