Non-calculation in calculations (3)
One morning last week, when I rode a different vehicle than usual, I encountered an incredibly beautiful woman.
Since then, I have ridden that vehicle every day, but I can't find her anywhere.
I was able to reclaim the time I spent glancing at the newspaper.
In the book “New Edition of the Zhongyuan Line Position Method,” there is a passage that directly denies studying past charts.
There is no point in drawing graphs from several past years and then writing in the rules of the Zhongyuan line. It is a waste. Even if you examine the past price movements, the actual trading prices do not appear on the chart, so it is hard to feel any real sense. It only strengthens the bad habit of thinking with the head.
(From Part 4 Practicality and Experiments in the “New Edition of the Zhongyuan Line Position Method”)
It admonishes strongly not to become a “K-line maniac,” but in reality, approaching live trading without reviewing past data is too reckless.
Even within the book, there are verification results based on past price movements.
Nowadays this is called backtesting before the main test, but even if calculated meticulously and verified, it is ultimately based on past data. It does not guarantee performance in an unknown future.
Therefore, there is a hidden pitfall somewhere. There are blind spots.
Blind spots are blind precisely because you cannot see them no matter how much you think about them; you have to actually try it to understand. It’s like not being able to convey the taste and sourness of pickled plums to someone who has never eaten them. In this respect, the book’s expressions are poignant and meaningful words.
The March broadcast was titled “Evolving the Peak-and-Trough Method: How to Create Trading Rules,” and it also included explanations of backtesting and forward testing.
Follow-up blog posts are uploaded weekly as well.
Links to the video and blog (free to view) are on this page.