1/x

Trading lessons from the boxing gym

Anyone who has been following me for a while knows my two greatest passions are quant trading and boxing, and I often find both to have great similarities....

Over the years I've learned a lot of priceless trading lessons in the gym
2/x

and one of the most important lessons I've learned is "box your style"

When I started boxing I had a heavyweight coach. This guy was a true champion, gifted boxer, who went toe-to-toe with the bests of the best. The only problem was that I'm a lightweight boxer (135lb)
As long as I was learning the fundamentals I had not problems. Had solid foundations (punches, footwork, head movement) so I thought that I will kill it in sparring. That was when I found out my biggest flaw - my boxing style

Because my coach was a big guy his style was
3/x

basically brawling, working the inside and very little perimeter/ inside-out/quick movement, which is what lightweight fighters do - use their agility/weight to create openings.

I was getting hit hard (and not hitting hard enough) against middle/heavyweights, and was
4/x

getting smoked against lightweights, who moved much faster than me (so couldn't hit them, and mostly got overwhelming amount of punches thrown at me).

This is when I understood the importance of using my physical advantages in fighting. I had to start working with
5/x

a coach who is a lightweight fighter, and can help me sharpen my style.. From the moment I started thinking and fighting like a lightweights, I started winning rounds, punch/move better, and embraced my inner fighters type.

This is exactly what we do as traders -
6/x

Trade our style. Trading strategies that don't compliment our psychology/inner-self is likely to result in losses. Why? because if our trading style doesn't "sit good" with us, we are likely to second-guess our model/strategy and override our decisions.
7/x

In the past I tested many quant strategies that had amazing results in the back-testing phase, but I knew that once I start run the risk I will not be able to let it perform (and I will be the biggest obstacle for the success of the strategy). This realization is what
8/8

makes great traders. It makes them understanding that they will not be able to withstand the risk, and adapt the model/strategy to fit THEIR style.

Trading our style is probably the only way we can make sustainable returns overtime
You can follow @VolQuant.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

Latest Threads Unrolled:

By continuing to use the site, you are consenting to the use of cookies as explained in our Cookie Policy to improve your experience.