"In the end, the battle in trading is never about how sophisticated the technology is, but whether the greed and fear in human nature can be firmly locked into a cage of rules."

An anti-common sense trading system

In many people's minds, mature traders' decisions must rely on sophisticated technical analysis. However, in Zhai Tiejun's trading decision-making system, technical analysis only accounts for 20%, fundamental analysis accounts for 30%, and the remaining 50% comes from intuition and experience.

This ratio sounds "mysterious", but Zhai Tiejun has a clear definition of it: Intuition is not a guess, but an instinctive response that fully internalizes technical rules, fundamental logic and the experience of thousands of transactions. Its premise is that the rules have been engraved into the trading habits and are still essentially part of the rules, ultimately forming a personalized trading system that belongs only to oneself.

Precisely because this system has been integrated into instinct, his core strategy has not been significantly modified for three years. Now he is gradually turning to a low-frequency, high profit-loss ratio trading idea, waiting patiently for opportunities in the system in exchange for longer-term stability. In his view, this is the only way for traders to grow: novices chase winning rates and frequency, while veterans abide by the rules and wait for opportunities.

First calculate how many times you can survive

Zhai Tiejun is more concerned about "how long you can survive in the market" than "how much profit you make." He has a very specific set of risk splitting rules: assuming that the total risk that can be taken is 100 points, he will split it into 20 equal parts, and the preset risk for each transaction will only account for 5 points. Even if you encounter extreme market conditions, you will have at least 20 trial and error opportunities, which is enough to hold on to the bottom line of your principal and wait until the market conditions that fit your trading system arrive.

This set of splitting logic applies to every transaction, which are three iron rules that cannot be touched: do not open a position without a plan, do not open a position without a stop loss, and never temporarily modify the stop-profit and stop-loss standards during the position.

All rules for opening positions, stopping losses, taking profits, and adding or subtracting positions must be clearly written into the trading plan before placing an order; as long as you enter the market, you must strictly follow the plan and never make temporary adjustments due to market fluctuations. The principle of "quantitative loss" is always followed when adding or subtracting positions. No matter how the position changes, the total stop loss size will never exceed the preset range.

In Zhai Tiejun’s definition, the consistency of trading is a set of fixed operating systems: fixed opening and exit standards, fixed stop-loss position rules, and fixed logic of adding and subtracting positions. Once there is a deviation in the execution of the strategy, first review whether the subjective judgment is wrong, and if so, leave the market immediately; if it is just normal market fluctuations, strictly follow the original plan and never be disrupted by short-term trends.

Standardized system, so that ability is no longer buried by capital

This dilemma of being limited by capital, when he came into contact with Eagl eTrader ushered in a turning point after challenging the mode. In the eyes of many people, the value of proprietary trading is just "providing large capital accounts", but Zhai Tiejun's biggest gain was that "stragglers entered the camp of the regular army" and saw the impact of standardized rules. The amplifying effect of trading ability.

The entire assessment is divided into two stages, the initial test and the re-test, which are based on a comprehensive assessment of profitability, risk control ability and trading discipline. The rules are clear and transparent, and the entire process can be checked online. After passing the assessment, you can enter the cooperation stage and obtain the corresponding size of trading account and profit sharing qualifications. You no longer need to rely on the slow accumulation of personal principal, and can directly connect to larger funds based on your ability.

"In the past, I had to cross the river by feeling for the stones, and it all depended on luck; now I am moving forward within clear rules, and I will get the corresponding financial support whenever my ability reaches.

At the end of the interview, when talking about what advice he had for new traders who joined EagleTrader, Zhai Tiejun’s answer was clearly divided into two levels:

If you are a newbie in the industry, you must receive systematic formal training as early as possible. You don’t have to be like the older generation of traders. You have to go through all the detours before you can gain a foothold. A standardized system can help you build trading knowledge at the lowest cost;

If you are a veteran who has been polished by the market and has a mature system, you do not have to be stuck in the bottleneck of personal capital. Your trading talent is worthy of matching a larger financial stage.

Trading is never a gamble based on luck, but a long-term practice against human nature. Rules maintain the bottom line, the system amplifies capabilities, and a reliable platform will make this path of practice more stable and farther. More knowledge about proprietary trading is still being shared. If you are interested, please follow us!

Risk warning: Derivatives trading is a high-risk investment behavior, and there is a possibility of principal loss. Past trading performance does not represent future performance. This article is only a sharing of traders’ personal experience and does not constitute any investment advice or return commitment. Overseas financial services must strictly comply with local regulatory requirements. Please participate with caution after fully understanding the rules and risks.