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
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