Chapter 5 The conceptual paradigm of trading
Once we have established the basic assumptions of our trading system, we need to consider how to implement it in practice. Traditional financial scholars often face the challenge of sustaining profitability in the market due to a conflict between trading assumptions and trading methods. Trading methods must be developed through real trading experiences, similar to learning how to ride a bike - no matter how much theoretical knowledge one has, they won't truly learn until they go through the process and experience a few falls.
Trading methods refer to the process in which traders create conditions to solve practical problems during the trading process. The method is often not unique even if we use the same trading assumptions. Our methods may be completely different in practice. Let's look at how to design trading methods under the premise that trading assumptions are reasonable and determined.
Price volatility can be unstable, with large fluctuations at times and small ones at other times. In the early/>/>
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