I have been watching the 2022 Australian Open. I love to watch individual spots because I learn a lot about my business from the human emotions, failures, successes, and situational events that occur.
The one that caught my attention this week was during the semi-final match between Rafa Nadal and Matteo Berrettini. Lesson: You need predictable consistency to win the war of investing.
In the 4th set of their semi-final match, Berrettini needed to win that set to stay in the game. He was down 1 set to 2 against Nadal. He knew that if he lost the 4th set, it would be game over. He started playing unbelievable Tennis – as described by the Euro-sports anchor. I watched him win 4 love games in a row in his service game. It was later analyzed that he won 23 points consistently on his serve. He was on par with Nadal and edging closer to taking the set. Nadal had no answers to Berrettini’s upper hand in the game.
Suddenly, while they were both balanced on serve, Berrettini was in trouble. After 5 clean love games in a row, he was down a break. Nadal seized the opportunity and closed out the set and the match.
I started wondering, why would someone who played so well suddenly drop in consistency? In a flash, he was out of the tournament!. Tennis is a very unforgiving sport, a slight error can mean the end of your grand slam. You need to be consistent. Alas, very few men and women are consistent. It is very difficult for humans who excel in an area to perform at a high level consistently. However, it is very easy for humans to remain consistent and do bad things! E.g. a player who can consistently play poorly in a tennis match and lose the match; it is rather difficult to consistently play well and win. That is why those who manage to do it are few in number and are well paid for it.
In investing, it is similar but worse. You have to stay consistent. Doing the right things and taking the right decisions. Failure to do this could be the end of your capital. In the case of Investing, not only may your grand slam be over, there may be no opportunity to play next year because you could lose all your funds. Therefore, make sure you are investing using an investment vehicle that is consistent.
How does Berrettini ensure he can be consistent in his next grand slam? Practice, Practice, Practice. Is this foolproof? No. Despite the practice, emotions could cause him problems. His serve may still fail him. He could even serve properly and the ball ends out of court!
At 5Mastery, we have solved this problem in our investment operation. We took out the part that humans cannot do consistently and gave it to a guy who can – computers. I am sure Berrettini will pay top dollar for a machine that can consistently position his arms, legs, breathing, racket tension, etc in a way that he can serve aces. To his detriment, however, he does not have such a machine and it is not allowed in his sport. Fortunately for us, we are allowed to use machines to compete with men in investment and trading. Machines will come on top over a long period of time because they are consistent.
Is 2022, is your investment strategy consistent? Do you have a Hedge Fund that is 99% automated to deliver you profits consistently? We have developed such a strategy in our trading and investment and it has been operating consistently since 2018, delivering profit every year since then. You can see our performance here. It is based on Artificial intelligence and Machine Learning.
Knowing what to buy or sell is easy. Buying and selling in form of trading are easy. The most difficult part is flawless consistency in execution, always, even while the crowd is against you and when everyone else is losing their heads. Humans do not do this well – mainly due to emotion. We give that job to the computer in our Automated Trading and Investment system and let the consistent results speak for themselves.
Disclaimer: Not everything in trading and investing can be automated. We get that. That is why our automation scope is not 100%. It is 99%. That is still a lot. It is the reason we are so consistent in our results. In 2021 for example, we had 10 months of consistent positive results in our overall fund portfolio. That led to a fantastic 2021 return to our investors. You can read more on this here.
Watch out for my next lessons.
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Sam Adegoju
www.5mastery.com