Current Affairs: The Rational Speculator

What if your tastes differ from mine? What if my tastes aren’t the same as yours? How do we resolve this conundrum?

Find what is objectively good. In the realm of trading and investing, how do we determine what is objectively good?

It’s simple: observe what objectively works and its inverse. Take your long strategy and consider its inverse—does it equate to a short strategy?

If yes, you have a high probability of success.

If no, your methods have a low probability of success.

The probability of success reflects your approach’s effectiveness and can be further tested by examining randomness or statistical significance. While this might sound simple to a layperson, a seasoned pro will recognize the depth of this insight.

For instance, understanding why it’s vital to invert your long parameters for a compelling short reveals your ability to navigate both with and against the current.

The following is today’s playbook, boasting a high probability of success and extremely high statistical significance.