Building a single mental model that contains the full understanding of our strategy in a simple enough form to hold in our minds at once has proven to be difficult. I can't quite be sure if we fully intended this to have be our main goal for this year but looking back certainly it has been. Pragmatically there are other avenues we could have explored that would impact our trading results to a greater degree but we've always considered those to not be worth anything if we obtain a larger edge without a clear understanding of what we're actually doing.
The more subjective approach posited today as a kind of acceptance that we might not find that mental model anytime soon generated some a new understanding. Increasing the granularity of our tradable ideas by lowering the risk of less probable ones is a good approach that isn't discoverable if we continued searching where we have been. Looking at this small discovery it beckons the reasoning that in domains of high uncertainty no abstractions can exist that provides any understanding of them. If it were possible the uncertainties would not be uncertainties. True uncertainties cannot logically generate abstract explanatory models and therefore the answers must be assembled as you go. Could be? Possibly.
Good Trading.
There are some ideas that have been marching towards a synthesis - or at least that's been our agenda with them. Reconciling the differences between difference facets of our model into one more complete universal picture is slow going. Exactly how it is that it can be known beforehand that there are ideas ripe and waiting or that some future idea has ripened considerably even if we don't yet know what it will be is a mystery. In the wandering we've found some small edges with width enough to grip and leverage to move so now we've walked away with a few changes to our model. These changes feel good and true but I suppose only time will tell how accurate we were.
Good Trading.
Encountering the obvious limitations of our bottom-up momentum chasing strategy defines an edge that puts the strategy in some perspective. The further we move into either strategy to the exclusion of the other the more at risk we are for serious oversights. There is valuable information in our top-down approach unobtainable by even the most thorough and intelligence observation bottom-up. So today we're analyzing from top-down (I need to decide for proper terminology when referring to this perspective) to recoup our losses from yesterday, where we will pick up with our momentum live trades thereafter.
Good Trading.