Use the inductive method to find out the basic point that can be deduced, and on this basis, formulate a series of operating rules that suit your personality.
In the early trading market, the moving average was a very effective indicator for trend trading.
Basically, you can make money lying down by buying and selling, but it will become more and more difficult to make money later on.
So some people count which moving average works best for a period of time. In fact, this is for the sake of generalization. So what is the correct posture?
Sea Turtle gave a very good answer. Many people think that the secret of Sea Turtle is actually fund management, but in fact, the basic point that Sea Turtle can really use for deduction is: Sea Turtle believes that most markets have trends, and a big trend can erase Flat small losses and a surplus.
All the rules of the turtles are actually based on this basis.
Please note that the base point is not indestructible, it only needs to ensure that the probability of failure is smaller than the probability of a person obeying the traffic rules but still being hit by a car.
The sea turtle is just an example. In fact, there are many relatively solid bases in the market.
In fact, the basic point of some markets is a layer of window paper. If it cannot be pierced, it is a meat grinder, and if it is pierced, it is a cash machine.