The thread tests a few hypothesis:
1 - This journal will serve as a testing ground to a hybrid multi strat book being tested with a 20% trading allocation, 40% trending allocation, and 40% yield allocation. (More on this later)
2 - In a world dominated by high frequency algos, I think the best hope we have at out performance is to do what humans can still do best beyond number crunching computers, see genuine patterns to identify the signal between the noise. This means trying to find the best macro trends to ride based upon strong fundamentals before the machines pick up on the transactional data, and then let the machines and market do all the work for you to move the market. I hope maybe this journal can engage in thoughtful discussion on how valid the fundamental thesis being tested actually is.
As such, posts will be divided into two categories. One will be a heavy dose of fundamental and macro analysis to determine bias, and the second will be the actual trade positions being entered with various updates as the positions develop.
3 - Of course, the decision is fight them or join them? So as the journal develops, I will start testing various program based trades and compare them against the discretionary results.
Some more clarification:
The Trading allocation means both sides long and short of the trade will be taken. These will be by and large trades open and closed within the same day.
Trending, as it implies will be trades with positions built over time to capture a larger trend. These trades may last from a week to months depending on if there's still a trend to ride or not.
The yield allocation will be a combination of carry trades, possibly bonds for spreads, or even high yielding dividend stocks. This is the "investment" portion of the portfolio where I get paid for doing nothing instead of wearing out my mouse clicking finger.