Adrian Reid walks through a capital-allocation spreadsheet with roughly 20 trading systems to design your target portfolio before you trade. Pick one system, backtest it, go live, then add the next one until you hit your desired exposure.
So the capital allocation spreadsheet has all the EST systems in it. So even though you may not know what the systems are, or you may not be intimate with them, or may not be confident in them yet.
It doesn't mean you can't go in there and design the portfolio. Assuming you will build confidence in each system as you work towards your ideal portfolio.
My approach would be to design the end state portfolio as best you can right now, using the tools you've got, which is a capital allocation spreadsheet that has 20 odd systems in it. And you can vary all of the percentages and you can then see, okay, what markets does that mean I'm trading? What strategies does that mean I'm trading? How much long does that mean I'm trading? How much short does that mean I'm trading? You can do all of that even though you don't even know what the rules of the systems are yet.
Build that allocation, then say, all right, which system do I want to get comfort with first? Take that one, do the back testing, dig into it to really understand it, and then when you're ready, go live, then find the next one, then dig into that, and then when you're ready, go live and just gradually build your exposure.
Sam.
