Shravan Venkataraman Profile picture
Oct 2, 2020 7 tweets 1 min read Read on X
Discretionary traders blow up sooner or later.

For ex: check what happened to Ed Seykota.
This is a sarcastic tweet. Ed Seykota was a systematic trader, whose discretions with his systems eventually led to big drawdowns and eventual bankruptcy. Be careful with discretion though.
Especially when you're trading systematic style, you have to be absolutely thorough and rigorous about whether you want 100% mechanical, or some element of discretion in your system. The discretion parts should be decided before testing stage to stress test the system.
The more moving parts a system has, the more fragile is a system is going to be. The lesser the moving parts, the more robust it will be. It's better to minimize discretion as much as possible when you go the systematic way.
The list of things you can bring discretion into is big. Eventually you must narrow down on things that will bring least emotion alongside discretion and start trading - and you can add more discretion as you gain experience and remove emotion from trading.
At the end of the day, for an inexperienced and immature trader, discretion is going to be the one factor that will largely cause blow ups of accounts. To this day, brokers RELY on you blowing up. A profitable trader isn't good for a broker.
So, trade wisely. If you're a beginner, you have no business starting off with 100% discretionary style of trading. Also, please educate yourself about LEADING and LAGGING indicators and not just use any rubbish strategy you find online without validating.

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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)
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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.
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