원문 보기
In this video, I'm going to give you the number one piece of advice Ray Dalio gave to me. And if you don't know who that is, he is the founder, chairman, CEO of Bridgewater Associates. They are one of, if not the largest hedge funds on planet Earth. Now, if you don't know who I am, my name is Steven Brooks.
I am a hedge fund manager and I specialize in systematic options primarily on the S&P 500 index. So, let me take you back about 2 years ago. I'm standing outside of Newark Airport in New Jersey waiting to enter the terminal. I was on the phone with my wife. We just had a baby, so I was making sure that mommy and baby were doing really well.
And as I'm on the phone, I see a silver Mercedes Maybach pulling up to Newark Airport with a Connecticut license plate. So, as soon as I see that, I think to myself, "What hedge fund guy is this?" So, the the back door opens. What I see coming out of the back door is like the oldest, most beat-up Keds shoes you've ever seen in your life, followed by blue jeans with holes in both knees that had to have been at least 50 years old, followed by a really kind of beat-up and like weird-colored brown-grayish Patagonia fleece.
And to top it all off, that was all on Ray Dalio. And I'm looking to the left, I'm looking to the right to see if anyone else notices, and obviously nobody notices. So, I don't really say much, but I I think in my head, I I have to speak to this man. I mean, Jesus, I have to speak to this man. So, he's walking towards the entrance of the terminal, and I go, "Ray!" And he looks at me.
I go, "Ray, how's it going?" I stick up my hand, I say, "Hi, my name is Steven. Like, I'm in your world. I'm in the investing space." This is 2 years ago. "Do you have like 2 seconds for me? Is this a bad time? You trying to catch a flight?" And he goes, "No, no, no, it's fine." I go, "First of all, are you lost?" And he goes, "What do you mean?" I go, "Well, Teterboro Airport is like 10 minutes down the road." Now, for those of you who don't know, in the greater New York City area, Teterboro Airport is where the private jet field is, the private jetway is.
So, normally you would think Ray Dalio, a billionaire, um would be flying private, but in this case, he was in Newark Airport like all the schlubs like you and I are. So, um he laughed about that. I said, "Look, I'm in your world, like I I I invest my own money. I do really well. I want to be a hedge fund manager one day.
Like, what's one piece of advice that you could give me? If you can only give me one piece of advice, what would that be?" And what I found really interesting is he looked me right in the eye, and instantly he said, "Meditate twice a day for 20 minutes." The owner, CEO, whatever you want to call it, of let's call it the world's largest hedge fund.
If it's not the number one, it's up there in the top three. But, he said, "Meditate twice a day for 20 minutes." He did not talk about strategies. He didn't talk about being diversified. He didn't talk about private equity, equities, fixed income, any of that stuff. He literally said, "Meditate twice a day for 20 minutes." Now, I looked at him a little bit dumbfounded.
And he said, "You want to stay like this all day, son. And meditating twice a day for 20 minutes is the only thing that allows me to do that." And when you think about it, the reality is this. When you are calm, you make better decisions. And ultimately, what I find so kind of like interesting about Ray Dalio is his advice was about executing better.
Not timing the market better, not some better strategy. It was about executing better. And I think that this is a a really good time to kind of talk about why that's so different than the type of advice you wish you got from someone like Ray Dalio because what you wish you got from Ray Dalio was like this is when you buy, this is when you sell.
Like that's what you want. But he didn't even comment on that. We didn't even speak about that. We ended up speaking for about 5 minutes after that and then that was it, but like he didn't even speak on that, which again I find absolutely fascinating. And the reality is this, most investors, traders, they're looking for the strategy.
And I get that. And I understand why. Like I was looking for strategy. I was looking for buy this then, buy this, sell this at this time. That's what I was looking for. But he is clearly more focused on the execution side. And I think the reality is there are many fine strategies out there. You know, I think our systematic options is quite good, the insurance business.
Others think, you know, there's stock picking out there that happens to be quite effective. I think that there are many things in the market that work. And I think that the folks that do really well, really really well, they have something that is like the equivalent of a single or a double. Not a grand slam, not a home run, not even a triple.
I think they they have some strategy that's that they would qualify as like a single or a double. And their focus after that is not trying to go out there and find a triple or a home run or a grand slam, not trying to find like a lot more of these strategies, but their immediate focus is I have something that works, let me focus on execution.
And I think that's really, really fascinating because, you know, many out there in the investing space are looking for like the holy grail, like the the the perfect timing, the best investment opportunity, the best trading algorithm in the world. And those people are not getting results even anywhere near those that are the best in the world because the best in the world aren't looking for the strategies you're looking for.
They're looking for base hits. They're looking to get on base, maybe a double every now and again, and then they spend the rest of their time on making sure that their execution their execution is 100% accurate every single time. 100% accurate every single time. And I can I can really actually speak on this personally.
The strategies that we run in our fund are the exact same strategies I was running manually over a year ago. And when I was running these strategies manually over a year ago, let's say the trade on average was was expected to have something like a $20 per contract per trade expectancy. Right? We run through all the numbers, we did all the analysis, and we had an expected value of plus $20 per per trade or per tranche or per time we do it.
The problem that I was running into is when as I was doing it manually, I was getting about 50% of that. Something like $10 was the actual outcome. My expected value was $20, the actual outcome that I got was $10. So, a 50%. Now, I did The first thing I did is what most people do. Let's test the new strategy.
Let's change the profit target. Let's change the stop loss. Let's change the entry. Let's try to diversify it. Let's try to do something else. And every single time I did it, my my started to get worse. And the reality is manual execution was a big problem for me. The reason why is because well, there would be sometimes I would talk myself out of executing.
There would be sometimes when I thought something else would be a really good idea and I should do that. There would be times when let's say I was going to do a condor, I do one side and then 2 minutes later I'd be able to do the other side and I wasn't able to middle volatility like I would if I did them both at the same time.
And that is something that I really really struggled with. I was like, why it like the model works. The model continues to work. When we run the model in the real world, it's getting amazing results, but I'm getting worse results. Is it the slippage? Is it commissions? Is it all that? And the truth is it really wasn't.
So, what we ended up doing was after we just ran around in circles and spun our wheels for God knows how long when we tried to find replacements or find adjustments to the strategies that we were running, we said, "You know what? Let's go ahead and automate this bad boy. Let's just automate it." So, we took the same strategies and let a bot run it.
And then once the bot ran it, we went from $10 per trade to 18. So, we went from collecting about 50% of that positive expectancy to um to being able to collect about 80% of that positive expectancy. Now, we the the type of strategies that I run within my fund are not like I have hundreds of dollars per contract expectancy like this enormous margin where um nickels and dimes don't matter.
You know, nickels and dimes really really matter to our fund and the way that we run our our book really. So, being able to go from 50% collection to 90% collection without changing anything is huge. And to me, what I think is really interesting is, you know, that really aligns with Ray Dalio. Like Ray Dalio could have told me in 2 minutes, you know, this is when you buy and this is when you sell and I would have been able to understand that.
But he told me something to improve my execution. When we were struggling to be able to get the results that our model showed that we were supposed to get, it wasn't a new strategy that needed the adjustment. It was the actual execution. So when you look at meditating, the ability to be less emotional, the ability to be calm, the ability as he said to be level-headed throughout the day.
That just allows you to execute on your strategy more accurately or let's say better. Because again, the reality is the best in the world are not looking for home runs, right? They're looking for singles and then they really don't really care about much else after that other than executing properly with tons of precision every single day.
So when you look at Ray Dalio's advice to me, meditate twice a day, it's about being able to execute more accurately, better, more often. When we look at the results that we got going from manual execution then executing the exact same strategies with automated bot, that going from 50% of what we were expecting to 90% of what we expected is just executing better.
And I think it's really, really fascinating. And to me, you know, most can go on YouTube like you are right now or can go on I wouldn't go on Reddit. But most can go on YouTube or read papers online that are published papers from universities about specific investment strategies. And you can find ones pretty easily that are effective.
And the problem is most are going to say, let me find some that are more effective, that are going to make me more money, that are going to make me more money more often. And while there is certainly a time and place for that, um you know, our our portfolio that has outperformed the market by like 20% over the past 6 months, individually, those methods are not like these giant enormous winners.
Like they're really not overly impressive on their own. In fact, to the average non-professional, they're probably skippable. But, we execute them really, really well and we're able to collect a really high percentage of the expected value that we hope to get, and that does add up tremendously over time.
So, I think that for many out there, if you are someone who's a little bit more self-directed, um, I think you have either access to, have been exposed to, or have the ability to get access to solid strategies that get you on base way more often than not, that have you getting base hits way more often than than not.
And I think rather than trying to find stuff that's better, I think that between what Ray Dalio shared with me and my personal experiences, instead of trying to find something that is dramatically better than that, which will is likely going to be nearly impossible or it's going to be very curve fitted, the thing that you should probably spend the bulk of your attention on is executing that 100% accurately 100% of the time.
That single kind of statement right there gave me personally the biggest boost in results. Me personally the biggest boost in results. And again, Ray Dalio could have told me any strategy. He knows I would have been able to understand it. Um, and he told me to meditate twice a day. So, it's not about finding the best strategy.
At the highest levels, it's about execution. It's literally about execution. So, if you're someone again who's a little bit more self-directed and you are not really spending a good percentage of your energy on am I executing this properly 100% of the time, it's essentially free alpha. Right? When we went from $10 on average or collecting 50% of the expected value to going to 90% of the expected value, that was 100% free alpha.
We had to take on no potential other downside to be able to get that upside. So, in the world of of financial markets where, you know, alpha is everything and gaining an edge is everything, you know, just being able to execute whatever it is that you do, whatever it is you have confidence in, 100% accurately, 100% of the time is way more likely to give you alpha or positive increase in your performance compared to trying to find something else out there.
I really, really mean that. Again, I mean that based on what Ray Dalio told me, but I also really mean that based on my personal experience. So, if you're interested in investing in our fund that runs about six to 10 different strategies, about 20 to 100 different executions all automatically throughout the day um in a cash flow type of strategy.
We trade zero DTE options, so we're in cash at the end of the of the of the trading day every single day at 4:00. If you're interested in learning more about our fund, you do need to be an accredited investor, but if you are, there'll be a link below this video where you can go ahead and find out more.
Um if you're not yet accredited and you kind of want to learn some of this stuff from us and you want to use our automated trading uh bots to be able to execute the trades on your behalf, there will also be a link below this video for you as well.
댓글 0