Long / Short SPY

In this episode, we cover some recent estimations of AI and its ability to possibly compete with human intelligence by 2032. We also take a look back into some terrible forecasts throughout history, and why I think these AI predictions may be inaccurate. We also cover trading strategy for SPY, also known as the S&P 500, and strategy stacking to combine two strategies together.

• Topics in this episode:
• Society is reshaping around us
• AI versus human intelligence capacity
• Blown calls in the market
• My worst trading experience
• Two characteristics of a trader’s worst experiences:
  – Over-leverage
  – Trading without a formula
• When trading without using a formula, you are susceptible to being influenced by the news and people you know, which may not lead to making the most sound decisions, based on data
• Building a long-only strategy for trading SPY
• Creating a trading strategy that goes, short SPY
• Three different parts to a strategy:
  – Buy rules: what do we want to have as a filter
  – Ranking: made for if you have more than one instrument in your portfolio
  – Sell filters: what indicator needs to trigger in order to sell?
• Creating a multistrategy with a new thought; instead of indicators, use strategies