As I develop various investing models for my future hedge fund and Investing Accelerator, here's an interesting problem I deal with.
Let's say: I have two profitable models
Model 1: recommends BUY
Model 2: recommends SELL
Which model do you trust? It is easy when both models recommend the same thing.
So naturally - being the anlaytical data scientist, CPA, portfolio manager, math guy, father of 2 kids, son of Asian family.... we dig deeper into data
I look at 4 years of data
I cut the data over and over again
I look at various situations where I might get hindsight and study past case study
Guess what?
Model 2 is more accurate this time.
I invest based on Model 2
I lost money.
Odd?
Turns out - after studying further - I notice an interesting pattern
It is the EASIEST to make money when both models agree.
Naturally, the response for any normal person when models diverge is to dig deeper.
But instead, what if we focus on the times where both models agree and we become more aggressive in buying or selling?
Turns out - that's a more profitable strategy than trying to be aggressive when models diverge
This simple observation is going to make hundreds of thousands of dollars.
Cheers,
Eric
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Eric Seto
Chartered Professional Accountant (CPA)
Chartered Investment Manager (CIM)
In July, my goal is to help 20 people without a financial background to master investing through Investing Accelerator.
Investing Accelerator is designed for people without a financial background.
The goal is to achieve 30% return per year.
In the first phase, you will learn long term investing and targeting 30% for tax free compound growth. This will help accelerate your overall wealth.
In the second phase, you will learn monthly passive income to provide a more predictable cash flow (target 30% per year) which can cover your expenses. This will help accelerate your retirement goals.
If you are interested, then let's hop on a call to see if you can benefit from the strategies in Investing Accelerator and get 30% per year. During the call, we will map out exactly how you can achieve 30%, what you are lacking, how you can improve. If you have any questions about the program, you can ask during the call as well.
Remember to go to the Classroom tab for additional investing resources.