Counterattack starts with controlling probability

Lao Pi chuckled softly, with a hint of sarcasm in his tone.

[Of course. Market rules are always set by people. As long as you are willing, it is possible to break the old order and establish new rules that belong to you.]

Li Hao frowned even more tightly and asked in a deep voice, "Break the old order? You mean—completely change the rules of the game in the market? You know how difficult that is."

Lao Pi said calmly:

Haven't you experienced the hard things? From Noah Technology to New Star Investment, you've come a long way, never following others' paths.

If you simply pursue relative returns using existing rules, you're just a good investor. But if you want to outperform the market and change it, you must be determined to break the old order.

Li Hao did not answer immediately. The lights outside the window seemed hazy in his eyes.

He whispered in his heart: "Breaking the old order...is it worth it?"

[It’s not a question of whether it’s worth it, but whether you are willing to bear the consequences of doing so]

Lao Pi's voice was deep and powerful.

The collapse of the old order always triggers conflict and can even make you a target of public criticism. But if you succeed, it’s not just a victory for the market, it’s a personal transformation.

Li Hao fell into deep thought.

He had never thought about this problem so seriously.

Market rules have their own operating rules. He benefits from them and is well aware of the unshakable nature of these rules.

But at the same time, he also realized that the rules of the market always favor the strong, while ordinary investors can only passively accept them.

"If I choose to do this, will it succeed?" he asked in a low voice.

Lao Pi's tone softened.

The probability is always in your hands. The question is whether you are willing to pay the necessary price. Do you want to live a stable life in the market, or become the leader of a revolution? The choice is yours.

Li Hao closed his eyes and remained silent for a long time.

He knew that every word Lao Pi said hit home, forcing him to face the issues that he instinctively wanted to avoid.

"Is it really time to change the old order?"

That night, Li Hao did not get an answer, but a seed seemed to be planted in his heart, a seed waiting to sprout and change the future of the market.

……

"Li Hao, you said yesterday that you wanted to explore optimization solutions for the existing trading system. What exactly do you mean?" Professor Hall put down his coffee and got straight to the point.

Li Hao pondered for a moment and then said, "Professor Hall, you have also seen that the recent market turmoil has exposed many problems."

"High-frequency trading, excessive market sentiment, and uncontrolled capital forces are eroding market fairness."

"Can we design a mechanism to make the market more transparent and efficient, and even curb this kind of irrational fluctuation?"

Professor Hall smiled slightly, with a hint of appreciation in his eyes.

"Your idea is interesting, but the core of the market is information and game theory. You want to change the rules, which is quite difficult. Do you have any specific ideas?"

Li Hao nodded, picked up a pen and quickly wrote down a few key words in his notebook.

"First of all, I think one of the core issues of market volatility is the excessive transmission of trading sentiment."

"Panic selling and speculative buying drive both amplify volatility. If we can set certain trading restrictions when market sentiment reaches extremes, such as automatically delaying trade matching, we can effectively mitigate market volatility."

Professor Hall stroked his chin, thoughtfully. “This is somewhat similar to a circuit breaker, but you’re talking about more like a dynamic limit based on sentiment indicators, right?”

"That's right." Li Hao nodded. "We can trigger dynamic trading limits by monitoring market sentiment in real time, such as surges in trading volume, the skewness of buy and sell orders, and sentiment analysis on social media."

Professor Hall nodded slightly.

"This is a good idea, but there's a problem – sentiment monitoring requires very accurate data. How can we ensure it doesn't misjudge? Once trading restrictions are triggered, market participants may lose trust, and even further panic may ensue."

Li Hao smiled slightly: "So, this mechanism must be very transparent."

"We can make the sentiment monitoring algorithm public so that all participants know the triggering rules. In addition, when restricting trading, we must also provide clear information, such as which indicators have reached extreme values ​​and how long it will take for market sentiment to recover."

“Another issue,” Li Hao continued, “is high-frequency trading.”

“It’s not inherently bad, but when it’s abused, it exacerbates market unfairness. Ordinary investors can’t keep up with high-frequency trading algorithms, which can complete a large number of trades in a very short period of time, thus distorting price signals.”

Professor Hall frowned and said slowly, "High-frequency trading is indeed a problem. Many regulators have tried to restrict it, but the results have been limited. Do you have a solution?"

Li Hao drew a curve on paper. “We can introduce a time-weighted transaction fee model. The higher the transaction frequency, the higher the cost. This will force high-frequency traders to reassess whether their operations are cost-effective.”

Professor Hall smiled. "That's an interesting idea. However, high-frequency trading does have its value, such as providing market liquidity. If we forcibly increase costs, wouldn't that be counterproductive?"

Li Hao nodded. "You're right. This mechanism needs to be adjusted dynamically, not one-size-fits-all. For example, when market volatility is low, we can relax restrictions on transaction frequency; when volatility intensifies, we can strictly enforce the fee cap."

"There's another point," Li Hao continued. "Existing market rules don't require timely information disclosure, especially for large capital flows. This makes it nearly impossible for ordinary investors to compete with institutions."

"If we can design a more real-time disclosure mechanism for fund flows, ordinary investors will also be able to better judge market trends."

Professor Hall shook his head slightly. "But this raises a contradiction. Institutions want confidentiality, while ordinary investors want transparency. How do we find a balance?"

Li Hao replied: “Perhaps, we can use QK Chain technology to make the records of fund flows public, but set a reasonable delay.”

“For example, all transaction information is published anonymously after 30 minutes, which protects privacy and makes the market more transparent.”

Professor Hall took a sip of coffee, his eyes full of admiration: "Li Hao, your ideas are very clear and innovative."

"These solutions may seem simple, but they require extensive data support and complex algorithms. They are not only technical issues, but also philosophical ones—market fairness and efficiency are always in conflict."

"Professor, I know that implementing these plans is not easy. But if we don't try, we will never know how much better the market can become." Li Hao's tone was firm.

Professor Hall smiled faintly and put down his coffee cup. "Excellent. This is what I admire about you: your keen observation of the market and your determination to act. Next, we can organize these ideas into a research paper and present our concept to regulators and academia."

……

Li Hao pushed open the door of Professor Hall's office and stepped into the bright morning sunshine.

The discussion just now made his thoughts clearer, but it also gave him different ideas.

"Can the thesis solve the problem?" he asked himself silently.

Academic discussion is necessary, but it is practice that can truly change the market order.

This complex market needs a shock to truly feel the power of rule optimization.

Li Hao's pace slowed down and he stopped under the shade of a tree. The breeze blew by and the voice in his heart sounded.

[Practice?] Lao Pi's voice came faintly, [I know what you are thinking, Li Hao. So, what is your plan?]

Li Hao lowered his head, a barely perceptible smile playing on his lips. "Papers are the domain of professors; theory always lags behind time. The market changes so rapidly that if we wait until a paper is published to spark discussion, we might miss the best opportunity. I prefer to start with practice first."

Practice is more effective

[However, how much determination do you need to put it into practice? Changing market rules is not something you can do by just making a few trades.]

Once your actions begin, it's not just a matter of investment strategy; it could also shake up the entire market's interest structure.

Li Hao frowned slightly. "Of course I understand this isn't an easy path. But the more complex the market, the more it needs people to try to change it. I don't want to be just an academic, writing a few papers for discussion. I want to make a real difference in the capital market."

Lao Pi chuckled.

[Okay, then tell me, where do you want to start moving this forward?]

Li Hao pondered for a moment and whispered, "Let's start with Nova Smart Investment. We have the technology, the data, and a strong team. We can definitely influence the market by optimizing trading strategies, guiding market sentiment, and reshaping the trading rhythm."

“Although we are not as big as those capital giants, if every action we take can accurately hit the key points, it will be enough to make them feel our presence.”

Lao Pi's tone became more profound:

[Use small to achieve big results, from tactics to strategy, and leverage the largest market feedback at the lowest cost. A good idea.]

[However, you must understand that this is not just a competition of technology, but also affects the interests of many people. The market will not open its heart to you just because of your ideals.]

Li Hao looked up at the blue sky in the distance, his eyes revealing a firmness:

"I never expected it to change on my own initiative. I just wanted it to understand that the new order is an inevitable trend."

Lao Pi was silent for a moment, then whispered:

If you really decide to do this, I can help you. Probability, emotions, data... all variables can be adjusted as long as you are decisive enough.

Li Hao smiled and said: "Since the market is a game, let's talk to it in the language it is most familiar with."

[Very good] Lao Pi's voice became calmer. [Then let's start from here and let the market feel your determination]