Do you think it's funny that the K-line chart generated by random numbers can't predict the trend of the next K-line? But most of them are unable to extricate themselves by predicting the trend of the next K-line. Therefore, the loss seems natural.

Conclusion: No matter how lucky you are, you can't escape the law of large numbers without the underlying logic.

Here, smart people will think about what kind of underlying logic they should follow in order to find the essence of this market and make money in this market for a long time.

Two lowest-level logics:

1, the logic of human nature (behavioral economics), the market is people's participation. As long as people participate in activities, there are inherent laws, and people have various prejudices, such as availability bias and anchoring effect. Refer to books such as "Thinking Fast and Slow".

2. Supply and demand logic. Any variety will eventually be delivered. Delivery must be in kind, so that cash can flow back. This logic should be further studied in the industrial chain.

Don't listen to all kinds of crooked ways in the market, we must proceed from the essence of the market. People who really make money in this market are constantly thinking about the underlying logic, and there is another underlying logic: the rules of the game of the exchange. Some strategies can also be derived from the rules of the game.

This passage is dedicated to the right person.

The core strategy of American mathematician Simmons is the quantitative trading model, which has been effective for more than 30 years and belongs to the forever effective situation.

Quantitative trading belongs to the category of technical analysis and is a trading system of index system. Some systems can trade through fully automatic computers.

Among the top 10 funds in the world, 7 are in quantitative trading mode, and the top 6 are all in quantitative trading mode. American mathematician Simmons' fund ranks in the top four, while China's top three private equity funds and Wonder are all quantitative trading models.

Therefore, quantitative trading is the general trend, and subjective trading patterns are difficult to agree. If the consistency of trading strategies is poor, it is difficult to ensure the stability of profits, and the compound interest model is empty talk.

The difficulty of subjective trading is more than 10 times that of quantitative trading. Everyone in the industry knows that left-handed trading will fail, and right-handed trading is the right way. Index delay is not a problem, but it conforms to the right-handed trading model. The key lies in how to correctly interpret the index system.

Quantitative trading is king.

I think all trading systems have cycles, including explosive periods and low tide periods, because trading systems will always encounter particularly suitable market environments and very unfavorable market environments. What you can do is to change with constancy. I used to do Hang Seng Index futures 70 times in three months, but now I can't do it 70 times in three months. Later, I made a profit and lost money. This is because I met with the outbreak of the system, and I just insisted on the system running. I think for all traders, there must be a fixed pattern that suits them and stick to it. There is no such thing as getting rich overnight. Compound interest is the most attractive place for investment.

This depends on whether the trend can be predicted, or whether there is a high probability. This probability depends on whether the market participants have laws to follow. Although people's thoughts are complex, they are by no means irregular. For example, if you put a knife on someone else, everyone will be nervous. Hundreds of years later, this mentality will not change. The effectiveness of a good trading system will always exist if the mentality remains unchanged, the behavioral response remains unchanged, the behavior remains unchanged, and the market trend remains unchanged.

There must be a stable transaction, learn Gann theory!