Shravan Venkataraman Profile picture
Oct 1, 2020 5 tweets 1 min read Read on X
When you start trading a thoroughly tested system once it has created in you the fullest faith through the testing process, you feel an immense sense of calm through losses and profits. If you don't trust your system completely, you haven't tested your system rigorously.
And, when you don't trust your system completely, that's when your monkey brain asks you to intervene and do stupid things that will skew the system's results. Intervening and making a loss is great. It reinforces the sense of "knowing" to trust your system and not mess with it.
What would be disastrous is intervening with discretion and actually making a profit or even a windfall in one trade. This brings negative reinforcement, lures you into thinking you can intervene and that your discretion and intuition are better than the system you have tested.
This eventually leads you to doing certain things that will lead you into bigger losses than what you'd have got if you had followed the system. That's when you'll know that you have been shown your place by your system.
If you have a system that you have thoroughly tested and rigorously checked using the right tools and methods, it pays to place the fullest trust on the system, even in understanding when the system no longer works by looking at the deviations.

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More from @theBuoyantMan

Mar 16, 2023
One of the major risks in the SIP and buying index funds philosophy:

There can be 2-3 decades of net zero or negative returns, but somehow nobody even cares about that.
I am not saying we shouldn't have SIPs or purchase mutual funds.

But accepting the programming these MF companies and portfolio advisers are preaching (allocate to equity % acc to your age).
Given the restrictions around foreign investments, we have a significant home country risk.

Everyone believes India is a growing nation and stocks and index will go up only over next 1-2 decades.

No one stops to think about what if they are wrong.
Read 10 tweets
Mar 11, 2023
I came to Jaipur for work. I didn't resist having to learn Hindi.

If Marwari was spoken by everyone, I'd have learnt Marwari.

If it was another state, another language, I'd put in effort.

I won't be entitled saying "i am giving you business, you speak Tamil".
For my line of work, there are very few places I can work in - Mumbai, Gurgaon, etc.

Call it luck, I got my job for my line of work in Jaipur only.
If I wanted to be a Software Developer, I'd probably have chosen to be in Chennai or worst case go to Bangalore.

(I don't like Bangalore btw, worst city to live in with the traffic and poor city/roads/airport planning)
Read 10 tweets
Feb 18, 2023
One major thing I have come to realise over the last couple of years:

Those who promote a single asset-class or single instrument *fully* systematic trading are scamming you or misleading you into thinking it will work over the long term if you stick to the system.
This is more applicable to those breakout style systems that intend to do trend following.

By nature, trend following is a way to capture the right tail.

If you look at trend following CTA portfolio over last few decades, you'd see that equity isn't a major part.
They allocate to equity/indices only as a form of diversification.

The reason single asset/instrument trend following doesn't work for very long is a factor of efficiency.
Read 35 tweets
Feb 5, 2023
This is going to be a full review thread on the OBAGE DT-31 model home theater tower speakers.

Been using it for a week, and "Blown Away" is an understatement.

I checked sounds through different modes (3.5mm jack, optical, bluetooth, etc.)
Main purpose I bought is for use through optical cable from TV.

But now that I have seen and heard this speaker - I'd say the quality over bluetooth connection is mostly in-discernible to a normal listener from the optical output.
These were the settings I tested with. Full bass and treble, 55% volume roughly.
Read 15 tweets
Jan 29, 2023
Was looking for home theater speakers - that would play multiple roles - for TV, for bluetooth music listening, and for movies (on different devices.

Had shortlisted a few, and a friend suggested to check out this brand *OBAGE*.

Got this DT-31 model. Two words - Blown Away.
I'll post an extended review with proper videos after using it for a week or two.

But the first day trial - movies, dialog, music - classical, vocal driven, edm, etc., blew me away.

At only 50-60% the sound fills a 20x20 room.

Took a few videos for my friends on my phone.
And, the speaker is not yet set up to the configuration suggested by the company (woofers facing each other, bass and treble at full, etc.,).

So the quality of audio you listen in these videos aren't even 30% of the actual potential of the speakers.
Read 12 tweets

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