You don’t have to add anything in order to be happy; you’ve got to drop something.
~ Anthony De Mello, Awareness
A couple weeks ago I published a piece discussing transitioning my portfolio into a long gamma, long volatility trading strategy. You can read it here.
I hinted in that piece, “By no means am I at the end of my journey with these strategies. This is just where I’m at right now. I’m sure there are more improvements ahead.”
Indeed there have been. No changes in philosophy or aim, only changes in execution. And the overriding theme of the changes jives with the quote above. The strategy just needed LESS. Less decisions. Less moving parts.
It’s hard for me to understate how important and mentally freeing it is to strip strategies and ideas down to their core essence. When I’m getting in lost in creating rules and scenarios and if/then statements, before long, it’s easy find for me to find that the end result is a strategy that is pretty far removed from my original aim. The strategy morphs into something that loosely circles around my original goal, but simply fails to fully hit the mark.
That isn’t progress.
Progress is simplicity. Simplicity means easy decisions to make. Easy decisions lead to less errors. Less errors leads to serenity. Serenity leads to profits.
At least that’s how I look at it 😉