The second level of trading, quantitative trading, has its own trading system.
Traders not only need to summarize and count market trends and spend a lot of time reviewing them, but they also need to have the ability to extract information from phenomena.
Shannon's definition of information is very insightful: information is an increase in certainty.
Traders usually think that the market is uncertain. That is because our information sources are incomplete and the future behavior of market participants is non-quantifiable. But history is fixed and history repeats itself. History can be quantified.
If a trader wants to have awesome skills, he must quantify them, such as Gann's quantitative time cycle, Livermore's quantitative breakthrough, and the classic Fibonacci retracement ratio.
We cannot perfectly predict the future, but we must use historical models to predict the future. There is nothing new under the sun. We must have our own trading system. Trading is not random gambling. If it is, we must bet at the time when the winning rate is high.
Quantifying profit and stop loss will prevent people from falling into greed and fear.
A good time is when the profit-loss ratio reaches 3:1. I suffered heavy losses several times, and it took me 5 years to develop my own basically perfect quantitative trading system.
From the different levels of cycle quantification, as well as the corresponding amplitude, price pattern, and timing points, a multi-level matrix is compiled. With the big picture in mind, trading will not change direction arbitrarily, and judgments will be reasonable and well-founded. It is worth millions, just like Mendel discovered the law of heredity and Mendeleev discovered the periodic table of elements, which amazed me.
