ET Interview | Ma Taochun: Pure technical analysis school, how to stick to the 10% self-operated retracement red line

In the EagleTrader assessment rules it is written: the maximum drawdown shall not exceed 10%. When he first came into contact with this number, Ma Taochun felt that it was a heavy restraint. But after going through the assessment, he completely understood that this red line was his “first line of defense” to survive in this cruel market.

For the freedom of not being disturbed

“Trading does not require social interaction, just be yourself.” This is how Ma Taochun explained his original intention of choosing trading. He has been paying attention to the stock market for more than ten years, but it was not until October 2024 that the foreign exchange market was officially launched. What attracts him is not the quick money that makes him rich overnight, but this kind of “business that can be accomplished by one person.”

He runs his own small business and has free time. He can watch the market all day long, but he does not have to bet all his living expenses on trading. This “half-time” sense of relaxation allowed him to guard the most difficult psychological barrier for most people from the beginning.

The biggest enemy is yourself

Like almost all traders, Ma Taochun also paid expensive tuition. After a series of small losses, his palms became sweaty, his heart beat faster, and his mind was strangled by the obsession of “turning back the money.” So he frantically increased his position. The anger of not admitting defeat caused him to completely abandon the system. He entered and exited frequently and refused to stop losses, until his account completely reached zero in just a few hours. After the liquidation, he thought for a long time and finally admitted: In the market, the biggest enemy is never volatility, but himself who does not follow the rules.

Encountering rules and rebuilding discipline

That painful experience did not defeat him, but instead gave him an almost paranoid reverence for the rules. Later, he came into contact with EagleTrader’s self-operated assessment. Those mandatory maximum drawdown limits and single-day loss limits actually cured his common industry problem of “being unable to control”.

These seemingly cold assessment red lines have become the “best scaffold” for him to rebuild trading discipline. His trading system is very pure – multi-period resonance, which has never been significantly changed once established. “Trading is not as complicated as possible. Simple and effective strategies are the easiest to stick to.”

He is 100% based on technical analysis, and his intuition is only an assistant. All buying and selling decisions must ultimately have technical evidence. He particularly emphasized “consistency”: using only one system, all transactions follow the same set of logic and match predetermined positions. If you look at the indicators today and listen to the news tomorrow, and occasionally make money by luck, you will eventually lose it based on your strength. Only by maintaining consistency in trading can profitable results be replicated.

Strictly abide by the risk control plan

“My principal is 10,000 US dollars, and the system’s maximum allowable loss is 1,000 US dollars. Before touching the hard red line, I gave myself a full 50 times of fault tolerance and adjustment. The maximum single stop loss was stuck at 20 US dollars. Surviving in the market is more important than anything else. As long as you stay on the poker table, you will always have another chance.”

He also showed extraordinary calmness about retracement. After each maximum retracement occurs, as long as he trades strictly according to the system, he can usually get his net worth back to the high point in about three days. “Whether it is floating profit or floating loss, my handling logic is the same – keep an eye on the trend structure. If the holding logic is still there, stay patient; once the structure falls below, close the position immediately without hesitation.”

The rules gave me real confidence

The biggest gain from participating in the assessment is not the passing itself, but “knowing that as long as I follow the rules, I can achieve stable profits.” He often made stupid mistakes before the assessment, and the strict rules forced him to always remind himself not to take any chances. Slowly, following the rules turns from a passive constraint into an instinctive habit. When I saw that I could make money continuously and stably by strictly following the rules, my confidence finally grew from the bottom of my heart.

At the beginning, Ma Taochun chose to trade for the freedom of not being disturbed. Now he understands that true freedom is not to do as he pleases, but to no longer have to pay for his emotions. Those rules that once made him feel strict, now seem to be the most reliable support.

On a road full of temptations and traps, the rules did not restrict his steps, but gave him the confidence to go on. If you are also looking for the confidence to go further, you might as well learn about EagleTrader
Assessment Rules Start by making a truly mature change in your trading career.