A short transcript excerpt from Kosta Ouzas (YouTube video "Short-Side Liquidity Build") discussing short-side trading strategy during market corrections. Ouzas emphasizes that corrections are opportunities to accumulate positions and take profit on rallies, warns that models are not certainties, and describes the ability to "walk the price" below power-law support — even theoretically to zero — while managing risk and resetting positions.
If there is a tiny, a small enough rally for us to take our profit, we're able to reset and walk the price even further. And we can even walk the price below power law support. We never take anything as a given. Nothing's a certainty in investing, even if it looks statistically certain in the models that we produce. We need to always assume that things can be broken and the system is able to reset and even work. For technically we could walk the price all the way down to zero. That's why right now these kind of corrections we actually really enjoy, because it allows us to fill up our bags and make some profit on this trade.
