Demon Lord Heart Sutra — Wonderful Awakening and Origin! How does the crypto world combat quantification!

1、

Strategy: Choose Your Battlefield — The “Barren Land” of Quantitative Power

The core of quantitative trading is algorithm execution based on historical data, statistical patterns, and clear rules.

Its advantageous areas (micro fluctuations, high-frequency arbitrage, sentiment inertia) are precisely where humans are at a disadvantage.

Therefore,

The first step in confrontation is “The Land of No War,”

Choosing a battlefield where the power of quantification is hard to reach.

· “Ingenious” Application: Insight into Structural Blind Spots

· Longer Time Dimensions: Many quantitative models focus on signals at the minute or hourly level.

Your “ingenious” lies in perceiving the “energy structure” and “cyclical position” at daily and weekly levels.

Quantitative methods struggle to effectively price assets requiring deep industry understanding (such as the long-term logic of “Five-Dimensional Themes”) and grand narratives (like national fortune cycles),

This is your territory.

· The Fuzzier “Circular Motion” Stage: Quant excels at identifying clear trend and reversal patterns.

But during the chaotic transition of “circular motion” — such as the “peak and decline” or the ambiguous turning points of “decline giving way to prosperity” —,

Algorithms relying on historical patterns tend to fail.

Your “ingenious” is in sensing the subtle aura of this energy transformation.

· Market Behavioral Blind Spots: Quantitative models create extreme emotions like “mass killing mass” and “panic selling.”

Your “ingenious” is in recognizing that this itself is a market distortion that can be exploited,

caused by algorithmic convergence trading, rather than a collapse based on value.

2、

Mindset: Cultivate Your Mindset — Become an “Emotionless” Observer

Quantitative trading has no emotions,

but it excels at “stimulating and harvesting human emotions.”

Its fake breakthroughs,

instant surges and drops,

are all “lures” designed against human nature’s fear and greed.

The core mindset of resistance,

is to make yourself more “inorganic” than the machine.

· “Awareness” Cultivation: Become a “Mirror” of the Market

· Break the “Feeling of Being Targeted”: Quantitative trading is not personal.

Its trades are indiscriminate.

Your “awareness” lies in recognizing that,

all the violent fluctuations triggered by it,

are merely natural phenomena of market energy (the game of long and short algorithms),

unrelated to your personal gains or losses.

This can fundamentally eliminate anger and anxiety.

· Implement “Selfless Discipline”: Amid the “noise” and “traps” created by quantification,

your “awareness” must externalize into strict rules: act only at preset “causal nodes,”

bet only within your calculated risk-reward range,

exit only when your lifeline is breached.

Let rules counteract emotions,

transform you from a “trader” into a “rule enforcer.”

3、

Tactics: Optimize Your Entry — Hunt in the Algorithm’s “Cracks”

On the right battlefield,

with the right mindset,

execute precise strikes.

· “Causal” Waiting: Only hunt for “inefficient” opportunities

· Use quant’s “mass killing mass” to create buy signals: When quant strategies collectively trigger sell-offs due to risk control rules,

causing irrational market crashes (intraday lows),

this often marks the “causal” point of “decline giving way to prosperity.”

Your “causal” lies in waiting for this collective behavior created by algorithms,

a “price threshold” with excellent probability and odds.

· Abandon “millisecond” competition: Never compete with quant in micro-speed battles for limit-up or rebound.

Your “causal” is in the “stability confirmation” after volume divergence,

and the “retracement confirmation” after platform breakthroughs.

These nodes, requiring time and market consensus to verify,

are too risky for quick in-and-out strategies,

but are key for your “main force” to add positions.

· “Life” Creation: Dynamic Adjustment,

No Fixed Method

· Position as Your Main Weapon: Use the “Positioning, Light Position Trial and Error, Deterministic Scaling” system we established.

In the chaos created by quantification,

always use “scouts” to test the waters,

only when the market proves your logic (giving you floating profits) and the structure is confirmed,

do you deploy your “main force.”

This allows you to trial and error at very low cost,

while reserving most of your troops for the real decisive battle.

· Incorporate Quantitative Behavior into Your Analysis Framework: Mature traders will begin to “ingeniously” observe quant traces in the order book (such as mechanical order placements or block trades at key levels),

and “respond” accordingly.

For example,

identify a price level as an algorithm’s dense stop-loss zone,

then brief breaches of that level may instead be a “causal” for reverse operation.

Summary: Elevate to Confrontation,

Become an “Ecosystem Observer”

Ultimately,

confronting quantification is not about defeating it,

but about coexisting with it,

and leveraging its behavioral traits.

1. You elevate from a “chart analyst” to an “ecosystem observer”: your analysis is no longer just of candlesticks,

but also of the energy behavior patterns of different participant types (quantitative,

institutions,

hot money,

retail investors).

2. You elevate from a “trend follower” to a “structural arbitrageur”: you use quant to reinforce trend inertia for momentum,

and also exploit the “market structure distortions” caused by collective shifts (such as liquidity drying up leading to overshoot) to position.

3. You elevate from an “emotion prisoner” to a “rule embodiment”: quant is a collection of cold rules,

but you,

through “ingenious awareness and causal emergence” cultivation,

become a wise,

insightful,

but more ruthless “rule embodiment” than machines.

The true confrontation,

is realizing you can never beat the machine at its game,

so,

you choose to create your own,

higher-dimensional game.

In this game,

the speed,

computing power, and ruthlessness of quantification,

are merely background parameters you use to observe the market,

verify your logic,

and ultimately execute your “Dao.”