Quantitative traders will get you started: Why can some trading strategies bring profits?

量化交易员带你入门：为什么有些交易策略能带来盈利？ Quantitative traders will get you started: Why can some trading strategies bring profits? <!-- @@@ -- Hello everyone, today I want to talk to you about a topic that is often mentioned but not easy to explain clearly - Why certain trading strategies or rules can bring profits. This is critical for every investor, whether you rely on systematic strategies or prefer subjective judgment. Only by understanding your own sources of income and knowing whether you have a certain "advantage" can you maintain a clearer mind in the financial market. Here, I will combine my own experience to share some theoretical foundations and explain why certain assets, asset combinations, and even dynamic trading rules can be profitable. <!-- @@@ -- Risk premium: like buying and selling insurance in the market I often use the analogy of “buying insurance” to the concept of risk premium: - Buy insurance: You have to pay premiums all the time. Although you often make small losses, you can get large compensation when a real disaster strikes. - Selling Insurance: You can collect premiums frequently, but may suffer a huge loss on rare occasions. In the financial market, there are similar characteristics: some people are…