The Real-Time Experiment will be modeled after George Soros’s 1987 classic The Alchemy of Finance. I have decided to run a portfolio centered around very unorthodox strategy.
My general approach will be centered on exploiting long term fundamental ideas through a series of short-term bets. My investments will be based off my assessment of value and sentiment. I typically look to buy undervalued markets or short overvalued ones as I feel those offer the most attractive risk/reward.
A few general thoughts on my strategy.
I found that synthesizing various strategies I had learnt or read about, while coming up with my own approaches would best steer me towards my goal of consistently generating alpha.
Unlike the ignorant fundamentalist, I am aware that markets truly can remain irrational longer than one can remain solvent. This is why I intend to to support my fundamental viewpoints on different markets with a strong pulse of the market. I will repeatedly try to find low risk entry points in a market that continues to go against my bias. The resulting effect will be a series of ‘paper cut’ losses to the equity of the portfolio accompanied by the occasional home-run, when I am able to confirm my bias.