A Brief Discussion on CTA Quantitative Strategies. (Part Two)

The second group suitable for CTA is individuals who have capital but are not overly anxious and possess a certain level of risk tolerance.

In the cryptocurrency world, there are thousands of truths about making money, but I only believe in one: slow is fast.

Making money in the cryptocurrency space and being able to hold onto it has never relied on quick profits; every example one can think of requires the accumulation of time.

Some people say how fierce Liangxi is; at one point, with two thousand dollars, he made tens of millions through a short position. But how long did it take for him to lose it all? Recently, he has bounced back again, but how long until he loses it all again?

It is undeniable that Liangxi has his unique trading style, but it is not suitable for the majority of people.

Once you make money, you must be able to hold onto it. Money that cannot be held onto does not count.

Any trading method carries risks. Although CTA is a relatively low-risk strategy, it is not an absolute holy grail.

The financial market is essentially a battlefield; to make money from it, certain skills and mindset are required.

The logic behind CTA is to chase rising prices and cut losses, earning money from trends.

The risk is low because it involves multi-factor assessments for trend judgment, entry points, stop-losses, and manual interventions.

During range fluctuations, entering positions following the trend can lead to stop-losses if the market reverses, causing wear and tear.

When a one-sided trend emerges, it involves continual profit-taking and increasing positions.

Therefore, CTA is not suitable for individuals with small capital who are eager to turn things around.

CTA is only suitable for investing, not for gambling.

Only the money earned through trends and time can allow individuals to more clearly grasp this wealth. #加密市场反弹