“First, the only certainty is that there is no certainty. Second, every decision, as a consequence, is a matter of weighing probabilities. Third, despite uncertainty we must decide and we must act. And lastly, we need to judge decisions not only on the results, but on how they were made.”
Treasury Secretary Robert Rubin to University of Pennsylvania Commencement, 1999

“Lever up all the things in risk parity, hedge, and trade some alphas if you can.”

“Lever up all the things in risk parity, hedge, and trade some alphas if you can.” (James Hodge’s philosophy, to me 15/11/20, after he made 52% in 11 months).

Risk Premia harvesting and alpha. Keep alpha separate and smaller (James).
– Make decisions based on how confident we are in various effects. We should always be less confident in alpha than in long run asset class risk premia.
– When write off alpha? If an effect has failed to show up in the data for a third of the period it did work (James).

Think long term, and focus on what’s best for the client

Alex Becker’s advice re business. I thought long term from early 20s to mid 30s – worked for me..

Inventory – trading is buying and selling/shorting of inventory

All trading is buying and selling/shorting of inventory. Create systems based on this. Never turn a scalp into a swing and vice versa else maths breaks down.

Repeatedly ask yourself the following three questions:
1. What position do I want on? (delta (selection) and vega)
2. What position do I have on?
3. What’s the appropriate way to bring 2) closer to 1), given the costs of trading?
If “managing” the position has become hard, it may be because it’s not really the position you want anyway (James).

Source: Dream 13/10/20, guy on RW re: psych, James on RW

It IS possible to love your life and love your job every day

Buffett: “I tap dance to work every day.” “‘Take the job you would take if you were independently wealthy. You’re going to do well at it.” “There comes a time when you ought to start doing what you want. Take a job that you love. You will jump out of bed in the morning. I think you are out of your mind if you keep taking jobs that you don’t like because you think it will look good on your resume. Isn’t that a little like saving up sex for your old age?”

Elon Musk

Joe Rogan

Backups

1. Backblaze: auto
2. Dropbox: After each file change, manually. Annual fee.
3. Evernote: For MVO, RD, daily trading sheet, R scripts and Word docs. Also WL code. Manual.
4. Hard Drive: Quarterly, in G Calendar
5. Website backup: Auto, plus manual after large change. Sent to Dropbox automatically.