Having a trading system with positive expected value and executing it consistently over a long period of time - this is the key turning point for Cheng Xi from countless liquidations to professionalism.

From being exposed to foreign exchange gold trading in 2017 to devoting himself to the market full-time in 2023, Cheng Xi has gone through a path of transformation from emotional trading to systematic trading. He summed up that experience by saying "many positions were blown up" - accounts ranging from a few hundred to tens of thousands of dollars were all reset to zero for the same reason: emotions got the best of them and they abandoned trading rules.

It was these lessons that prompted him to apply for the EagleTrader exam and train himself to become a "professional trader who relies on systems and rules to survive."

The underlying logic of the transaction

As an intraday short-term trader, Cheng Xi's positions should not exceed 3 days at most. In terms of decision-making weight, technical analysis accounts for 70%, fundamental analysis accounts for 20%, and intuition and experience account for only 10%. This clear weight distribution reflects his understanding of the nature of trading: trading is not a game that relies on prediction, but is based on system engineering.

In his opinion, the key to long-term stable profits is only one sentence: "Have a trading system with positive expected value and execute it consistently over the long term." His profit and loss structure is also very clear - no profit for small losses, small profits for small losses, and big profits for small losses. The system does not pursue every profit, but by controlling the extent of losses, allowing a few profitable orders to cover the majority of losing orders, and accumulating positive returns in the long term.

The only way to eliminate luck

In trading, luck exists objectively. But the difference between professional traders and amateur traders is the ability of the former to minimize the impact of luck.

Cheng Xi has a very clear understanding of this: "As a trader, you must first be a very rational person. It is true that even a rational person will lose control of his emotions sometimes, and bad luck will often cause your account to suffer heavy losses when your emotions get the better of you."

The solution he gave is consistency.

“When doing transactions, you must abandon the psychology of luck, build a trading system with positive expected value, and ensure that you continue to execute under various luck environments. Gain probabilistic advantages through the consistency of transactions.”

This consistency is reflected in multiple dimensions. He summarized it as: the consistency of the position size of a single order, the consistency of the stop loss space, and the consistency of the overall profit and the overall stop loss.

When asked what he would do if the strategy deviated, he did not give a complicated response plan, but returned to the most fundamental principle-return to consistency itself. This insistence on discipline, which is what he really learned after experiencing countless bankruptcies.

Risk control is more important than profit prediction

“For a professional trader, risk control is far more important than profit prediction.”

Cheng Xi controls the risk of a single transaction between 1% and 2% - less than 1% is not enough room for error, and more than 2% is too risky. This range allows him to execute the plan calmly and "not be dominated by greed and fear."

In the face of extreme market conditions, his response is equally clear: when losing money, through the dual control of overall risk control and single risk control, he will protect his capital if he can; otherwise, he will exit the market with a small loss and reduce his position; when profits retrace significantly, he will give priority to closing the increased positions, solidify part of the profits, and "prioritize to ensure that the principal is not lost."

This kind of refined risk control allows his account to return to its high net worth in an average of 2-4 trading days after a drawdown.

The gains of professionalism

Since Cheng Xi came into contact with trading, he has always focused on gold. In recent years, the volatility of the gold market has increased significantly - from fluctuations of more than ten dollars a day in the past to tens or even hundreds of dollars today.

His attitude towards this change is very professional: "I do not absolutely like or dislike volatility. What I have to do is to identify the sources and types of current market volatility, choose trading strategies and risk controls that adapt to the current market, and look for opportunities with advantageous probability from fluctuations to take advantage of them."

Looking back on the EagleTrader exam experience, Cheng Xi's biggest gain is not technical improvement, but "understanding that institutional traders need trading consistency."

For new applicants, he gave simple advice: "Calm down, familiarize yourself with the exam rules and supplementary terms first, and don't rush into operations as soon as you get started."

From liquidation to professionalism, Cheng Xi has verified a simple truth: the positive expectation system is the foundation, and consistent execution is the pillar. When these two are in place, trading is no longer gambling, but a career path that can move forward stably.

This is the core concept that EagleTrader hopes to convey through the examination system: trading is not a game of prediction, but a discipline of execution.