EBS was the only winner that I added to today (as you see on the screenshot). It went up to +40%. At the peak, my portfolio was up 2%. But in the end it gave back most of the gains and ended up only 0.6%. I suppose that I should not complain given how the broader market performed. Tomorrow is another.
But the funny thing that came to y mind and why I am writing this is that a while back (maybe a year or two ago), someone PM'd me that some people on SI have been tabulating my trades and have concluded that I pick losers and nothing is to be gained from me.
I can only conclude that they have a very incompatible psyche and trading style than mine. But I stated posting the red/green rails to show how things should be traded.
Last night I spilled the bean with ChatGPT and described in details how I trade. I asked it to analyze it and tell me if I am just getting lucky, if this is a quirk of this market, or if there is something to it.
The answer was that (1) What i do is counterintuitive and rubs most people, including the pros, against their grain. (2) To have an edge that lasts a decade one of 3 conditions must be met, and my style has all 3.
The gist of those elements is that my style is both psychologically and algorithmically hard to implement. So I am safe for now. For example, most people sell half their stake when a stock doubles, but I am more likely to have doubled it by the time it doubles. This amplifies the volatility which is hard on everyone, pro or not. Even if one is professional systemic trader, the performance is measured on risk adjusted basis and the increased volatility lowers the Sharpe ratio and kills their bonus. However, in my case, I have found a way to manage that volatility, but it is not easy to algorithmically program that. So safe because it is hard to duplicate. |
