One Net or Fifteen

Multi-signal continuous trend on crypto, signal selection by IC, and the construction-risk hedge nobody quantifies.

Hey friends,

So today I want to explore what I think to be a more robust approach to design a model to any sort of effect you want to capture.

Imagine that you’re a fisherman and your objective is to capture as much fish as you can from a single location. You already vetted that location, you know there’s fish there, now all you need to do is harvest it.

You have a few options:

• Use 1 small net

• Use multiple nets with different properties and sizes

• Use multiple boats to cover a wider area

What would you rather choose to achieve your objective in an optimal way?

Well, I am not a fisherman but I’d be willing to bet that if there’s enough fish to cover the costs, I want to run that at capacity and at least have the largest nets and multiple boats to capture all I can from that one location.

Well I see the sort of trading I do from the same lens. You have a certain effect (fish) and you want to capture as much as you can from it.

You can be the fisherman with 1 small net, or you can be the fisherman running things more optimally.

So for the past few weeks I’ve been working on turning one of my trend models into a multi-signal continuous model. You might wonder why not just leave it to run as is, since it’s been performing just fine (performance below).

In this article I will not disclose the signals themselves as thats part of my proprietary research, so ill keep it broad. The purpose is to show the effectiveness of this method and make the case for its long-term added robustness.