Source item

I'm in a process of learning a lot about portfolio architecture myself instead of chasing and playing pure beta. More so on the investing side, vs trading so much. Which in turn helps the trading side more. and even within trading things like psychological anchoring with "relative performance" where people will compare to a benchmark of lets say SPX being up 18% But you were up 11% with a 1.3 sharpe. On a risk adjusted basis and in terms of longevity you killed it. The SPX could drop 20%, and you drop 5% so overtime you will outperform with consistency, and a smoother path of returns. Higher sharpe, lower drawdowns etc, smoother compounding with less fluctuations.