Escaping the Golden Handcuffs

Why You Need Multiple Wealth Engines

The reason I don’t try to build “trading systems” is because their design largely assumes that the market maintains the same characteristics and features over time. For this to be a reality, it would imply static decision making and reactions from market participants.

This is far from what we see in reality.

The market has a mind of its own - a mind that keeps changing. It has an incredible way of reacting very differently to two seemingly identical pieces of news. The magic of the market is owed in part to the constant rollover in who the participants are (old traders retire, funds shut down, new shops emerge, etc…) which drives different decision makers into position to influence price action.

When I built Throne Capital I had two systems for this reason. One was scanning for equities that fit our parameters and the other was evaluating changes in the 13F and other filings that indicate who was entering/leaving the market for the different stocks we were evaluating or owned at the time.