Introduction

Born in 2008, digital currency, a large-scale social experiment that originated in government fiscal policy, has become a major asset class. Although no country recognizes its monetary properties, the elimination of digital currencies has become impossible. In the eyes of many decent people, it is an absurd scam, but in the eyes of many middle and lower class people, who have no hope of getting rich, it is the only possibility to get rich.

This strange unity of contradictions combined in one thing cannot but be a bizarre combination.

The fact is that 10 years ago in 2013, bitcoin was worth just 1,000 RMB, but today, even after the crash, it’s still worth around 200,000 RMB. 1,000-fold increase in 10 years has outperformed the rate of increase of most other assets.

In contrast, China’s stock market, which has remained constant at 3,000 points for years, has buried a number of retail shareholders. Suppose you had 4 million 10 years ago, after 10 years of speculation stocks have 5 million (if you can do, I believe you have surpassed the vast majority of stockholders), but your purchasing power must be shrinking.

This is the cruel Chinese stock market.

As a Chinese stockholder, facing too many problems, 3000 points for 10 years has been the pain of the stockholders forever, the stockholders are still T + 1 when the institutions can be T + 0, I do not know that the market can be barefaced not to protect or even squeeze the investment market inside the retail investor. This year, all kinds of favorable policies, more like a replica of the old folks don’t run.

Now quantitative investment tools more down to the taste of stock speculation retail investors, which leads to those who traditionally look at the fundamentals look at the k line of the retail investors in this market, simply is not fair. They are facing a naked massacre!

A god once said: ** Instead of spending time to improve poker skills, I prefer to find the opponent weaker poker game ** Why do we want to earn that knife mouth lick blood profit in those thousand years old fox, and not to find those rookies to participate in the poker game it?

Advantages of Quantitative Investing

Quantitative trading from last year’s obscurity to the present stigmatization, become the stock market fall scapegoat, why? It’s not that quantitative trading makes too much money.

Quantitative trading uses the power of computers to find opportunities that are invisible to the human eye. Thus exceeding the majority of retail traders with the naked eye trading gains, and the machine cold implementation of the code, neither greed nor fear of all kinds of emotional constraints on trading behavior. Getting higher returns is a natural thing to do.

Characteristics of the digital currency market

The high volatility, high returns, and high risks of digital currencies have surpassed most trading markets. luna’s airdrops have made many people rich overnight, while luna’s overnight plunge of 99.95% has left many more people dumbfounded. This is so different from T+0 in the stock market, you don’t have to worry about others being able to T+0 while you can only T+1.

The data can’t be faked on the chain, and there’s no friendlier market for retail investors.

I’ll say one more thing about whether it’s illegal domestically, the specific conclusion is that it’s not, but this market is a dark forest. Scammers and speculators mix in, plus digital currencies themselves are naturally anti-regulatory. Insisting on the idea that code is law is bound to be out of sync with the government’s regulatory mindset. However, from the level of the Chinese government is also insisting that digital currency is a special kind of commodity, and not completely blocked, it blocked the irregular capital plate and propaganda of digital currency can make a lot of money, to fraud on the people who do not have the cognitive ability.

If you think this is difficult to understand, you can imagine the 80’s stalls doing small business merchants, something, the threshold is just cognitive.

Advantages of quantitative tools applied to digital currencies

The digital currency exchange market adheres to its own open source philosophy. We can access all kinds of data we want through the various public interfaces of the exchange. How much data you can get depends on your own ability.

The 24-hour non-stop trading mechanism of digital currencies makes it convenient for everyone on earth to invest. In other words, the data generated by digital currencies in 24 hours is at least 6 times more than that of the stock market. Digital currencies are even more friendly if you count the difficulty of accessing the data and the time granularity of the data. For example, digital currencies can easily get 100ms of full 20-file orderbook data, whereas the average person in stocks can get no more than 3-second trick data. If you want to get more detailed 10-file L2 data, you have to pay a fee. Want to get high quality data, want to not spend money, in the A-share market, almost impossible. In the digital currency market, it’s all free.

Where is the source of profit

This question is really about asking yourself, what do you make money on?

For example, why do you want to participate in digital currency? Because we want access to the bubble of fiscal deflation. With fiscal releases, the price of a constant quantity commodity like btc is bound to keep rising with inflation. This is the basic logic of my buy and hold.

So my logic of operation must be, find the right time to buy, and then quietly wait for the government big water release.

And what about stocks? I don’t know where I others are strong. So I choose not to participate. Of course, if you have been involved in the stock market for many years and have been making steady profits, then the stock market is still a good place to be active.

In 2017 I know unequivocally that I made a huge mistake in the matter of digital currencies, and that mistake was knowing about Bitcoin in 2009 and not getting involved, and looking at 1,000 RMB of Bitcoin in 2013 and thinking it was too late to get involved. The good news is that it’s not too late to fix it.

Conclusion

At this point in time, those who will quantify and those who won’t will become two different thinking trading populations.

Quantitative investment is not a beast, nor is it a black devil, it is just a tool, you use it well, he is a money printing machine, use it poorly, it is a money crushing machine, we need to consider the question is in a trading market, how do we get their own trading advantage?

If you haven’t found the answer to this question, I don’t think it’s appropriate to participate in the trading market.

If you have found it, congratulations and good luck in the new trading cycle!