True simplicity is not simplicity for its own sake, but rather striving for simplicity under the same effect.
In the field of cryptocurrency trading, if one rule can yield a 10% profit, while two rules can achieve a 30% profit, how would you choose? Would you opt for the simpler rule or the relatively complex two-rule approach? I can give a clear answer: I would choose the two-rule option. Because when we engage in trading in the cryptocurrency market, the ultimate goal is to obtain profits, and we cannot give up higher returns just for the sake of simplicity; this would undoubtedly be an act of sacrificing the essential for the trivial.
If one rule can yield a 10% profit, and using two rules can also only yield a 10% profit, how should one choose? I believe everyone has the answer in mind; one would definitely choose the system that contains only one rule for the simple reason that it is simpler. When the same returns can be achieved, a simpler system is naturally better.
For example, under the premise of achieving the same acceleration time, electric vehicles are structurally simpler and cheaper than fuel vehicles, which is a reasonable comparison based on the same premise. But one cannot say that bicycles are simpler than electric vehicles, because these two are not under the same conditions. If we merely pursue simplicity, would we not all regress to a primitive society?
Social wealth, in essence, is merely a number, which has no substantial meaning in itself; what truly has value is the efficiency improvement it represents. In an agricultural society, completing a task might require 100 people, but in an industrial society, it can be done with just 10 people, and in an information society, it only takes 2 people; this is a huge leap in efficiency. The logic we construct for cryptocurrency trading systems is similar; when achieving the same effect, we should minimize unnecessary operations to improve efficiency.
The trading system for cryptocurrency trading has many similarities with operating systems. The simpler the trading system, the more complex the underlying logic that supports it tends to be. If the underlying logic is simple and merely superficial, lacking rigor and precision, then constructing such a trading system may be easy; however, in actual operation, it will frequently encounter so-called false signals, leading to continuous stop-losses, ultimately resulting in helpless abandonment.
Therefore, the understanding of simplicity cannot be generalized; it is necessary to clarify whether it is the underlying logic that is simple or the operational aspect. If one merely believes that a system with simple operations is a good system, it is highly likely that one will suffer significant losses in the cryptocurrency market. Are we entering the cryptocurrency circle to engage in blind speculation, or to earn real profits? Is it merely for the sake of ease of operation? In reality, what is called simple operation is essentially easy to recognize and quantifiable.
However, quantification is merely interpreting and filtering market information based on one's own logic, only selecting one possibility. Yet the reality of the cryptocurrency market contains infinite possibilities. Therefore, quantification may have certain advantages in a short time, as the market's possibilities are relatively limited in the short term, such as within seconds or minutes. However, once the time scale is raised to days, weeks, or months, the possibilities in the market become nearly endless. Just looking back one day, the price trend can show countless variations. When engaging in such long-term trading, no matter how simplified, quantitative thinking is unlikely to achieve ideal results.
Therefore, if one wants to engage in longer-term trading in the cryptocurrency market, one must further advance, upgrading the originally quantifiable method that can only respond to one possibility to a more advanced model capable of responding to countless possibilities. Many people refer to this advanced model as 'the Way.' I also attempt to define it; it should be the optimal response strategy for all possibilities. As for whether this thing is called 'the Way' or something else, everyone can decide based on their understanding. For example, in our daily lives, when we meet someone, we greet them with a smile; we may occasionally encounter someone in a bad mood who hits us. However, even so, it does not negate that greeting with a smile is a good social strategy. For instance, I often stay up late; perhaps one or two days of this will not show any noticeable effects. But there is no doubt that maintaining a regular sleep schedule over the long term is definitely better for one's health. Therefore, greeting others with a smile, maintaining a regular lifestyle, going to bed early, and waking up early can all be seen as optimal responses in life.
Returning to the cryptocurrency market, strategies such as light positions, following trends, long-term holding, and stop-loss are akin to going to bed early and waking up early in life; they represent a trading method. If we must rigidly define what a light position is, what the specific standard is, what it means to follow trends, what constitutes a trend in the cryptocurrency market, and what long-term means, we would be too mechanical. This is as absurd as stipulating how long to smile when meeting someone or how much to curve your mouth upwards. What truly should be standardized is our understanding of the cryptocurrency market, just as in social interactions, what is genuinely important is understanding that the other person is also human and that we are human too; this is the basic recognition in socialization. We should not focus on mechanical data and rigid regulations.
If we must provide some specific references, a light position should be based on the risk level that one can tolerate. As for what one can tolerate, only the individual knows best. After all, it is the individual conducting the trading; if one is unaware of their own situation, there is nothing more to say. Ultimately, the losses are one's own hard-earned money, and one must take responsibility. Generally speaking, major trends in long-term trading usually last for more than a month; they can last two months, or even three months, with the shortest being one month. However, we can only provide such relatively broad definitions; further precision is unrealistic. After all, no one can accurately predict when the cryptocurrency price will reach its highest point or when it will hit its lowest point. After going long and then closing a position, if the price hits a new high, there is nothing anyone can do; after all, the cryptocurrency market is not under our personal control, and even if we run our own market, achieving precise control is difficult.
Therefore, from the perspective of long-term trading, it is more appropriate to refer to the trading system as a trading strategy or response strategy. In the cryptocurrency market, finding the best strategy is the correct direction for our trading. From a strategic perspective, the simpler, the better. The simpler the strategy, the more it demonstrates that its underlying logic is strong enough. For example, some documents published by the central government may sometimes only be a few pages long, with the key content possibly consisting of just a few points. These documents can guide policies for a country with billions of people, highlighting their simplicity and effectiveness. In the cryptocurrency market, why do we need to complicate things? Sometimes, a few simple sentences can clearly articulate key issues. However, this simplicity is inevitably based on extensive in-depth research, information collection, and analysis, as well as rich social experience and a precise understanding of human nature and oneself, leading to such concise and profound conclusions. As the saying goes, 'the effort is outside the poem.'
In the speculative market of cryptocurrencies, some individuals can make money in the short term, but beneath their seemingly satisfied exterior, their inner world is weak and anxious, with a gaze that reveals confusion and a lack of confidence in the future; while others may not achieve ideal trading results in stages, yet their thoughts are clear, their goals are defined, they are low-key, their gaze is calm, and their inner world is peaceful, with confidence in the future. The differences in vision and realm ultimately determine each person's distinctly different trading life.
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