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The essence of quantitative trading is to repeatedly execute based on historical data, statistical patterns, and algorithmic rules. Its strengths happen to be the areas that are most difficult for humans—micro fluctuations, high-frequency arbitrage, and sentiment tracking. So how can humans turn the tide? The key lies in choosing battlefields beyond the reach of quantitative methods.
**1. Find an invisible perspective that quantification cannot see**
Quantitative models typically focus on minute- or hour-level signals. But what if you expand your view to daily or weekly charts? Here lies a world of "energy structures" and "cyclical positions." Especially for long-term logic that requires deep industry understanding, or macro narratives spanning economic cycles, algorithms simply cannot set prices.
Another critical point—quantitative methods fear ambiguous turning points. They excel at identifying clear trends and reversals, but at chaotic inflection points like "peak and decline" or "bottoming out and rising," historical patterns tend to fail. This is precisely where human perception comes into play. If you can sense those subtle energy shifts in the market, you will have the winning edge.
**2. Quantify the traps you create yourself**
This is a more ruthless tactic. Quantitative trading can lead to extreme behaviors like "many kill many" and panic selling. Essentially, this is market distortion caused by algorithmic herd behavior, not a collapse of value itself. Humans can instead exploit these machine-induced market distortions as trading opportunities.
**3. Cultivate the mental discipline**
Quantitative systems have no emotions, but this is also their weakness—they most fear the "human heart" that cannot be quantified by historical data. Becoming a truly emotionless observer is not about suppressing feelings, but about understanding how emotions themselves drive the market.