A Brief Discussion on CTA Quantification. (Part One)

So, what kind of people is the CTA strategy suitable for?

First of all, it is for those who do not know how to trade.

I have been trading for a few years, and I also started being fooled into trading with 100x contracts.

At that time, I didn't understand anything; it was probably the new trader protection period. Around the Spring Festival in 2020, there was a wave of rising prices. I would open positions whenever there was a slight pullback, starting with a capital of 1000 USDT, and in two months, I made almost 100,000. At that time, I thought I was a genius trader. I felt inflated every day.

Then came the pullbacks that led me into endless suffering. To put it simply, when I wanted to go long, I struggled to wait for the so-called support level to open a position, only to see it drop dramatically. When I wanted to go short, I finally waited for the so-called resistance level to open a position, and it shot up instead.

Every day, I felt extremely anxious, trapped in infinite self-doubt and self-inflation, being pulled back and forth.

I felt like I had transformed from a genius trader into a foolish trader.

No matter what I did, it was wrong; even if I went against my own thoughts, it was still wrong.

The most terrifying part was not the losses; the most terrifying part was after losing on a trade, spending a long time and a lot of energy to hold the position. When I finally broke even and made a little profit, I would close the position, thinking I could lower my cost and re-enter, only to see the market continue to surge in the direction of profit.

My mentality exploded with frustration.

This is what I understand and summarize from my own experience as 'those who do not know how to trade.'