Lesson #1 of 7:
"Turn Your Desktop Into A One-Man Hedge Fund By Optimizing EVERYTHING"
From: Dan Murphy
Corona Del Mar, CA
Merry Christmas, I’m really excited about what we’re doing here!
Over the next 11 days, you’ll discover a bunch of the tasty new tips and techniques my team and I have discovered to get you the most from your trading.
We’re also going to have some free giveaways to reward our valued clients.
First, though, a little back story …
A conversation with my European business partner Ruud.
“Some of these hedge funds are doing alright,” I said to him. “Not the old-school ones drawing lines on charts and trading off of ‘feel’ … But these quantitative funds are finding real inefficiencies in that market and making a killing.”
“And?” he responded.
“Well, we can do a lot of these same things ourselves now,” I said. “Thanks to AI and The Boss … In fact, with Meta MLs we’re outperforming a lot of these funds … Maybe we should give it a go?”
“Are you suggesting we start our own fund?” Ruud asked.
“I’m not sure,” I said. “All I know is these numbers don’t lie, and with some elbow grease we could get them even higher.”
Ruud agreed.
And that was the start of months of rigorous work and testing to figure out the best way to leverage the tools we’d created …
We didn’t want to just do as well as these “Quant Funds” we wanted to beat them.
One-Man Hedge Fund powered by The Boss in the ring
Sidenote: The whole goal for this “little test” (which amounted to months of time and hundreds of thousands of dollars invested) was to see exactly how far we could push the tools we created.
Creating The Boss had given Main Street traders the tools and raw power to compete at a world-class level …
Now, we wanted to find the optimal way to use human ingenuity to get it to peak performance.
Think of it like a machete. It’s a great tool, with a lot of power, and you can definitely use it to cut your lawn. People do it all over the world.
BUT …
Combine that blade with some human ingenuity and attach it to a motor and some wheels …
All of a sudden, you have a John Deere.
Which one do you think is a better lawn mower? The Machete or The Tractor?
I knew that if we wanted to beat out the big players from a home computer we were going to have to “upgrade our lawnmower.”
The first thing I did was spend a week digging up data and putting together a hand-selected list of the top best-performing funds I could find.
As my team and I dug into these funds and what made them work, we quickly realized that the best of the best all had something in common.
It seemed my observation was correct.
Out of the 10 best-performing funds, eight of them used quantitative trading.
Top Performing Hedge Funds. Quantitative funds highlighted in yellow. 1
“Wow, you were spot on man,” Ruud said to me on one of our follow-up calls.
“Quantitative trading is the only choice if you want to compete in the big leagues.”
“Yep,” I said. “This list is insane. You've got Bridgewater, which is Ray Dalio’s fund … Renaissance Trading, famous for effectively disproving the efficient market hypothesis … And, even Citadel is using quantitative data. They’re the largest market maker on the NYSE.”
“Now we just need to figure out how to tune up The Boss to compete with them,” Ruud said, grinning.
“Yep, that's the aim.”
1 https://www.forbes.com/advisor/investing/top-hedge-funds/
2 https://www.bridgewater.com/people/ray-dalio
3 https://www.citadelsecurities.com/what-we-do/equities/designated-market-maker-dmm/
4 https://www.cornell-capital.com/blog/2020/02/medallion-fund-the-ultimate-counterexample.html
We knew we were on the right track at this point. Quantitative trading is exactly what The Boss excels at …
We just had to make sure it could provide the same kind of gains Renaissance did …
With the same consistency …
And the same resistance to Black Swans.
Look at this performance during the 2008 financial crisis, one of the biggest Black Swan Events of our lifetimes.
Needless to say…
The next day when I put my nose to the grindstone, I was ruthless in my search …
I put every aspect of every strategy under the microscope, including how each interacted with the others (With just 100 strategies that would mean 10,000 data points to inspect) …
I examined the optimal way to use Meta MLs, and the optimal number of Meta MLs to use …
I even dug into the effects of diversification … I mean true diversification, the kind that can provide bulletproof hedging.
I’ll explain exactly what I learned about all these over the next 11 days.
But this brings me to the first big Lesson I want to share with you — the rest of the lessons will all focus on specific tips and tactics to optimize your trading. Including video clips, audio, and demonstrations.
Here's Lesson #1 …
When you want world-class results … and you want to ensure what you’re doing is making the biggest impact it possibly could … you need to examine the smallest parts possible.
It’s kind of like the opposite of Pareto’s Law.
Pareto’s Law states that you get 80% of results with 20% of the effort.
That’s where The Boss is now.
Load it up with about 100 good strategies and a decent Meta ML, and you’re 80% of the way to the top.
That’s a great place to be …
But if you want to be a one-man hedge fund … and have a shot at beating the best of the best … while transforming your life along the way …
Those last 20% of results matter.
That means putting in 5 times the effort to get them.
So that’s what we did.
We examined every component of the information going into The Boss under a microscope.
I’ll explain more of the details of every step in the next lesson, but suffice it to say …
The improvement was incredible.
If we had accepted “good enough” I never would have found half the insights I’m going to share with you over the next 11 days.
Truth is, before looking into starting my own fund, I didn't realize what The Boss was capable of. I may have made it, but its true power was hiding even from me.
My team and I have done the legwork… We’ve learned the tricks… And we can say with certainty …
For us, it was completely worth it.
I can’t wait to share everything we learned with you.
In two days, I’ll send you another email, so I can give you one of the most impactful for maximizing the amount of cash you’re utilizing (without putting another dollar into your portfolio).
Just one little tweak and my portfolio saw a 42% boost in profits
Be sure to check your email tomorrow. Adam, my director of client relations has arranged a special free gift for you.
Merry Christmas and trade smart,
Dan “Prince of Proof” Murphy