This morning, the pancake closed with a rise of 2.74%, breaking through the long-term trend and surpassing both short and long-term trends. According to the rules, there is currently no reason to hold a short position. The only thing to pay attention to is that both the 4-hour and 6-hour charts have become dull. At the same time, the 4-hour chart is currently at a series high of 9. If the close at 16:00 is a bullish candle and the high is 9, it is very likely to form a structure here. Therefore, according to the rules, if there is a bullish close, one can reduce positions or wait for the structure to form before reducing positions. At this speed, the 4-hour chart has around 12 cycles left before dullness disappears, which means about two days' time. The 6-hour chart is at a smaller level, and it will take only two cycles for dullness to disappear. So the key now is still the speed; once dullness disappears, it means to continue holding the asset.

Xu Xiaoming established five major principles of systematic trading: the principle of simplicity:

There are two types of people in the world who are the happiest, one is children, and the other is fools; their common trait is that they do not overthink. Complex thinking can lead to hesitation and indecision in trading, resulting in a loss of decisiveness at critical moments.

The first is a complex way of thinking. For example, investors often overly focus on the stocks they have already bought, trying to gather information from various channels. However, because different people have different perspectives, when stock prices fluctuate, discrepancies arise. Information that aligns with the trend will repeatedly appear in their minds, leading them to lose objectivity. If they want to sell, negative news comes to mind; if they want to buy, subjective news comes to mind. The second is a complex method of operation. It is common to see people check KDJ, MACD, trading volume, and fundamentals before buying. By the time they have seen everything they want and feel satisfied, the stock price has already risen, causing them to miss the best opportunity to act. The same applies to selling.

Therefore, establish a single trading standard, and operate cleanly and decisively according to that standard, never dragging your feet.

Heaven rewards diligence, and trading is to be simple.