The aggressive compounding experiment is officially a failure. 😅

As in, I have reached the point of no return/ruin, at about -83% drawdown.

This was due to two predominant mistakes.
The first mistake: for the first 10 odd trades upto like 50% drawdown, I was executing the stoplosses wrongly.

I discovered this only on that big drop one day where bnf went 300+ points in 5m when my system hadn't exited.

Bugs. 😑
Had it not been for that bug, I would still be around 45 to 50% drawdown range.

Second major mistake was oversleeping on that one day and missing that 400point trade.

That would have compensated current losses. That didn't happen. So losses that followed aggravated drawdown.
What I have learnt in this very short lived experiment:

1. Everyone can replicate Madan's experiment with a decent system. But timing and proper position sizing is very very important.
2. Aggressive position sizing will almost always promise risk of ruin. If your timing is good, you will grow your account early on to get conservative and minimise that risk. If you're not lucky with timing, it will be similar to my case.
3. No matter what you do in trading, you can succeed with even a half decent system if you have rock solid money, risk, and position management.

You will fail even if you have a super impressive system, but trade with high risk, very poor position and risk management.
I ll go and drink some water to drown my sorrow.

And then add capital again and start compounding it conservatively.
The main takeaway is that, execution matters a lot more than we give weightage to.

This is an undeniable truth.

Positional also - you may be able to get away with one or two execution related mistakes here and there. But intraday - no escape.

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More from @theBuoyantMan

20 Apr
This may rub people the wrong way

but if you follow the entrepreneurship and VC twitter, and take everything they say about "having a stable job is bad", "college education is useless (it is, but still)", etc., at face value,

you're legit gonna end up broke.
No matter which country you are in, remember that most of these VCs and entrepreneurs, barring a handful of exceptions had their major risks covered, had a cushion to fall back on, had backing from their parents, etc.
If you're quoting someone as an anti-thesis they're most likely an exception.

So remember: Exceptions can't be Examples.

Your best bet is to consider yourself the average case and get a top quality college education (STEM of course, anything arts is useless today).
Read 15 tweets
18 Apr
NOBODY CARES.

This is the truth.

Everyone's got their own life and their set of problems to deal with.

No one actually thinks about you or your choices, your life decisions, etc., enough to judge you.

So, go do what you want to do, and make yourself satisfied first.
Be unapologetic about not being or doing what other people want you to be/do.

You're not born to measure up to other people's expectations.

Sure, you have to co-habitate with others.

But that doesn't mean you are born to fulfill their wishes or expectations.
Do your best.

Do only what you can.

If you can't do something and that upsets someone, even if it is someone dear, you can be sorry that it upsets them, but you shouldn't ever be sorry you weren't able to do it.

You did your best.
Read 7 tweets
18 Apr
With the introduction of ARM based processor in Macbooks, Mac minis and eventually Mac pros, @Apple has set itself 10 years ahead in the game, from the competition.
Apple's tight stronghold and control over the developer ecosystem, with strict guidelines on how to develop for the hardware they are putting into their systems, can NEVER be replicated by Microsoft.

Unless @satyanadella upends the windows developer ecosystem and taps github.
Windows as such has a lot of moving components and although Windows 10 as an operating system itself has improved leaps and bounds from the disastrous Vista and Windows 8, it is not quite a match for OSx, especially with the advent of ARM processors in the scene.
Read 6 tweets
16 Apr
Protip for life:

For 1 year, live like a saadhu. Keep a budget of 1000-2000 max for your food and other expenses. Try to find a way to live well under that. Walk if you can. Take gov bus instead of auto. Do things the hard way.

Eat two or one meal per day. Survive.
Once you do this, no matter where you go in life thereafter, you will always know that you can make 1000-2000 rupees per month, and you can survive with one meal a day.

This will give you confidence to take calculated risks that are otherwise shunned by normal people.
Once you do this, there's no going back. Living out of a backpack and surviving in one or two meals a day is definitely possible.

But once you have done that, you will never be afraid to fail or lose everything.
Read 4 tweets
10 Apr
So, I built a high-performance Ryzen 9 based CPU for 1.8 lakhs.

As many of you have requested for the build spec and the details of the purchase, I thought I'd write about it today.

Time for a thread 👇👇👇
1/ The purpose of this system is purely business driven:

Video editing & rendering, trading, optimization, and eventually some machine learning and data analytics.

I expect the machine to pay 100 times up and above the cost of building it in the next 5 years.
2/ The following is the spec:

i) Ryzen 9 3900x - Rs. 39,300/-
ii) Gigabyte Aorus Pro Wifi - Rs. 24,500/-
iii) Samsung NVME M.2 1TB SSD 970 Evo Plus - Rs. 13,550/-
iv) WD Blue 4TB HDD 5400 RPM - Rs. 7,500/-
v) Gigabyte GEForce RTX 3060 Gaming OC 12GB GPU - Rs. 60,000
Read 40 tweets
20 Mar
Becoming wealthy and free is often a matter of hard work. But doing it peacefully is a matter of luck.

When you're single: Your parents and how they treat you, how your equation with them is - will largely impact how you do in life.
When you're married:

Your equation with your spouse, her equation with your parents, your equation with her parents, and her parents' equation with your parents and vice versa, all of these things will impact your life.
If you're a man, no matter what happens anywhere, ultimately everything and everyone end up smashing your head only.

So, to be able to work and take pressure/stress at work, it's important to have peace at home.

If that's not available, journey is 10x harder.
Read 13 tweets

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