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by robswc 1491 days ago
Finally a question I can answer (but ppl might not like it)! :)

It’s my personal opinion, based on my time and experience (and several books about the field), “90% fail” in the same way “90% of business fail.”

Tons of reasons but I truly believe lack of alpha is overestimated. I think finding alpha is not nearly as hard as people make it out to be. Execution and continuously innovating is the real challenge. Design your systems, knowing you will have to change up your strategy and focus on a system that will help you find new alpha.

I believe after lots of research, this is how Rentech did it.

And to touch on the business ananology again, you could have the best donuts in town but if the rest of your business is fundamentally flawed, it will become part of the “90%.”

Now, I’ll say this, I don’t manage some insane portfolio or anything. However, I run a private firm (myself and family) that makes for a comfortable life. I work more than 9-5, but I enjoy the challenges and freedom.

If you’re asking about more complex bots used in managing larger, institutional funds, I’m afraid I can’t answer that… but I imagine the challenges are quite different.

I try to post things that have helped me with building these systems from time to time.

http://www.twitter.com/robswc

Lmk if there’s anything else, I can try my best to answer.

1 comments

What books and advice would you give someone with zero knowledge that would make them a good investor such that they would be highly competent in managing a portfolio?
I’m afraid I can’t say I have a good answer for that, as I don’t consider myself an investor.

I actually don’t know fundamentals well at all and rarely keep up with news.

The systems I designed are for trades lasting no more than a few hours, so much of that stuff never comes into play.

I’ll just say, I think investors like Warren Buffett are good to emulate. They play the long game and play it well… I think doing something like that is a full time job though.

Last note, just knowing a few ppl personally, I’ve seen people grow their wealth by just sticking it into the market and forgetting about it ;)

Watch the Warren Buffet videos on YouTube. I did that and followed his advise. It works.