When asked about the biggest challenge in life, Musk thought about it and replied that it was how to use time effectively and always maintain a corrective feedback loop.

This also applies to quantitative trend-following strategies.

The reason for choosing to invest in the crypto market was its high volatility and all-weather trading characteristics, which allowed us to use time efficiently and quickly obtain and correct incorrect feedback. As the market continues to evolve and change cyclically, maintaining an effective corrective feedback loop is the key to refining excellent strategies. If you only set the goal to make money, you may be caught off guard when you encounter extremely unfavorable market conditions. Therefore, paying attention to the feedback loop not only helps the strategy to iterate and optimize, but also makes it easier to cope with market changes.

In the trend-following quantitative system, the corrective feedback loop is a continuous optimization process designed to adjust according to market changes and strategy performance:

1. Data collection and analysis: obtain market data, analyze trends and strategy performance.

2. Signal generation: Generate buy and sell signals using algorithms.

3. Strategy execution: Execute transactions to ensure compliance with risk management goals.

4. Performance evaluation: Regularly evaluate strategy effects and analyze returns and risks.

5. Feedback analysis: Identify factors that affect performance.

6. Strategy optimization: Adjust strategy based on feedback.

7. Loop iteration: Apply optimized strategy and continue monitoring.

This loop helps the system continuously improve strategy profitability and risk control capabilities in a dynamic market.