2024.5.6--2024.6.2
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Illusion#
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Since mastering the correct backtesting method last week, I have been testing many strategies that I thought were great before, but the results turned out to be a mess. In the end, they all ended up in "blowing up". Although I don't want to admit it (this mentality is a bit like the "always winning" teacher who refuses to show losing screenshots), the data is clear. I can't deceive myself.
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I don't know why there is always a slight illusion in this circle. Retail investors may think it's easy to make money here. Now I wonder if this feeling is similar to the logic of exchanging chips in a casino, with the ultimate goal of making people lose their rationality? Manipulating emotions and acting recklessly? Forget it, maybe I'm overthinking, it's messy, I don't want to think about these anymore.
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I used to be full of confidence in my genius ideas, and even after losing, I always thought it was just because my luck wasn't good enough. It wasn't until now that I suddenly realized that this feeling is a bit like when I was a child and didn't understand some natural phenomena, and then I unconsciously fantasized about various reasons to explain them. It wasn't until the teacher taught me in school that I realized how ridiculous the reasons I fantasized about before were.
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Give up illusions and embrace rationality. From now on, strictly follow the discipline. You can indulge in wild thoughts, but they must be tested.
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2024.5.7#
Today, I tested all the strategies I had randomly thought of before. Some of them were not bad, but a new problem emerged. A considerable number of strategies easily returned to square one overnight. Before blind testing, I felt good about these strategies and thought I had found the holy grail of trading, fantasizing about reaching the pinnacle of life~~~~ After blind testing and facing cold hard numbers, I deeply realized the cruelty of the market. Suddenly, I want to thank myself for the effort. If I continue to hold on to illusions, I will lose real money and a lot of time.
I thought about the above problem all night,
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2024.5.14#
- I still haven't figured out a suitable solution to the problem on May 7th (returning to square one overnight). I'm still on standby!!! I'll talk about it when I come up with something.
- Do you remember the illusion from last week? At that time, I just wanted to record my feelings. I felt that "trading psychology" was worth my efforts, so I tried to understand it. Guess what happened? It wasn't until today when I saw this sentence
It's that feeling of instantly understanding everything, I don't know if you can relate? Without further ado, I bought a book to read
2024.5.16#
- Regarding the problem on May 7th, after my blind testing with phased operations, compartmentalized operations, and strict stop-loss, I found that I can't solve this problem with my current abilities and understanding. So the most direct solution is that I will give up this strategy. I suddenly realized that a high win rate may not be a good thing, I'm not kidding. At the beginning, I was very fascinated and pursued a high win rate. If I saw a video on YouTube with a title like "90% or even 100% win rate," I would definitely click on it immediately. Until now, I seem to have made some "progress" and started to realize the huge risks behind a high win rate. The higher the win rate, the greater the hidden risks and the easier it is to lose everything. From now on, I truly understand the essence of the phrase "There is no holy grail in trading" 🤑
. - The book I bought on the 14th has arrived. I give this book 1000000000000 points and highly recommend everyone to read it. I have read part of it and my scalp is tingling. Damn, it's so powerful! It explains why most people can't do well in trading, as well as the underlying logic. It also provides specific solutions. The author used to be a psychologist, and you can sense the author's expertise between the lines. It's really impressive!
To make it easier for everyone to read, I wanted to provide an electronic version, but I don't know how to upload it, so I can only provide the Zlibrary link. Feel free to download if you're interested.
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I've been addicted to games for the past half month and can't break free. Hahahahahaha