Sri Lanka, Diversification and the Wild Cheetah

One month passed since we arrived to north-western Sri Lanka in second half of January 2017 for a half-winter stay. Enjoying slow pace of the life here, untouched nature around and beautiful ever-smiling people. My work got a bit relaxed mood as well having the time to plan the business development from different perspective. Due the time difference my automated PetronelSystems work for me while I am sleeping and I am sorting trading results after I wake up each morning. I must say I enjoy it better than to monitor the platform everyday till market close.  Conceding it wouldn’t ´t be able without my business partner supervision instead of me.

Last trading month seemed to have similar relaxed mode as the life here. Not big moves at all, decent profits for one month period. Crude oil systems, which made most of the money in 2016, are sideways for a few weeks, while automated systems for indexes raising their heads and provided majority of the profits in 2017 yet. Somebody would say the Trump effect, I call it the magic of diversification. Trading novices use to add to winners and replacing the systems trading sideways or losing temporarily. This is one of the biggest mistakes in systematic trading. The periods of winning and losing strikes are moving in the waves, but you never know before, what is the length and changing frequency of them. Experienced traders in the other side never underestimate the power of diversification. They also add to positions in valleys, not jumping frantically between systems. Just this approach many times makes the difference between losing and profitable trader.

With diversification, also consistency and patience are the keys for the profitable trading. There is no system providing profits all the time and to abandoning the system after the losing strike very often leads to miss that winning series which follows. And that´s exactly what the less experienced traders often do. After several losing trades, but otherwise absolutely in the backtest´s borders, they leave the “losing” system, because they think it doesn´t work anymore and jump to another system which is making money in that moment. And… The wave changes inevitably and they sooner than later are losing again. And a good system after the losing strike makes the new equity high again, with those experienced on board.

Last week we have visited the Wilpattu National Park here in Sri Lanka. It is 2 hours drive from Kalpitiya, where we stay in our temporary house. We decided to depart early, at 4 in the morning to be in the national park before sunrise. And we were absolutely lucky. Still in the dark, we spotted traces of the wild cheetah and after few hundred meters the mighty predator itself. He climbed up to tree where he was trying to hunt a monkey. As we approached quietly under the tree, we had all scene lasting about 20 minutes just a few meters apart. Leopard then climbed down the tree and disappeared in the jungle. It was very rare chance for such a close and long encounter.

After that we´ve traced many other wild animals in their natural environment, my camera overfilled with new pictures.

And this is investing to automated systems about. Giving you freedom, the ability to work from whatever place in the earth and the power to fulfill your dreams. Now.

In case you want to try, just contact me. I will suggest the system(s) corresponding best your personality and your investing objectives.

Oldrich Karas





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