Real Diversification is having an arsenal of different weapons
It's not what they say
The Secret Isn’t Another Asset: It’s Ten, Twenty, a Hundred Strategies
The Rookie Mistake: Thinking in Assets
Most traders believe diversification means buying a bit of stocks, some bonds, maybe gold, and a sprinkle of crypto “just in case.” It looks good on a PowerPoint slide, but in practice it’s a bad joke.
When the shit hits the fan, everything correlates. 2008: stocks and commodities tanked. 2020: global panic, even gold stumbled. And there you are, thinking you were protected because your portfolio had “different assets.”
Wrong. If all your bets depend on the market behaving, sooner or later you’re going to get smashed.
The Vaccine Against Disaster: Collect Strategies
Real diversification isn’t piling up assets, it’s piling up trading brains.
One strategy is like a sniper: lethal in the right conditions, useless everywhere else. What happens if you only have a sniper and suddenly the fight turns into hand-to-hand combat? You’re dead.
That’s why you need a whole army of strategies:
The trend follower, hunting long moves.
The contrarian opportunist, betting on rebounds when all hope is lost.
The arbitrage guy, living off microscopic cracks in the market.
The volatility hunter, making money when everyone else is praying for the storm to stop.
The scalper, stealing cents in lightning trades.
And every other system you can invent, test, and keep alive.
One strategy alone is suicide. Five is a start. Ten is decent. Twenty or thirty? Now we’re talking robustness.
More Strategies, Fewer Funerals
The market kills systems every year. What worked yesterday dies tomorrow. Mean reversion shines in 2017 and dies in 2018. Trend saves you in 2020 and betrays you in 2021. If your portfolio depends on one or two strategies, you’re basically playing Russian roulette.
The only way not to vanish is to have a zoo of strategies that fail at different times. When one drowns, another swims. When one bleeds, another is cashing in. The key isn’t for all of them to win at once, it’s for them not to all sink together.
Think Like a Conductor
A proper portfolio of strategies isn’t a solo act, it’s a symphony. Each instrument plays differently: some set the rhythm, some carry the melody, others fill the background. What happens if the violin stops? Nothing, the music goes on. What if the drums go silent? Nothing, the show continues.
That’s how your equity curve should sound: not like a drunk guitarist missing chords, but like an orchestra where, even if one player dozes off, the whole piece keeps moving forward.
The Final Lesson
Stop thinking diversification means buying more assets. Real diversification means having many ways to attack the market.
One strategy = a one-way ticket to the graveyard.
Two or three strategies = you’re alive, but terrified.
Twenty or thirty strategies = now you’re flirting with immortality.
The only way to survive this game is to become an obsessive collector of systems. It doesn’t matter if you don’t understand every asset. What matters is that you understand the ideas.
Because in markets, the only certainty is that everything that works will eventually stop working. And when that day comes, the question will be simple:
Did you have more weapons in your arsenal… or did you go to war with a single pistol?
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