In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough walks through the 3 Volatility Buckets he uses to frames market environments, and how he trades differently within each. Importantly, he highlights how fractal math allows you to fade B.S. Old Wall ‘averages’.
“The Game is all about setting up for tomorrow; it’s not about going back and waxing poetic about the averages of things. That's so Old Wall. We are stochastic; we believe in non-linearity and jump factors. Fractal math is about the particular things at the particular time that gives you points of entropy, breakouts, jump conditions, etc.”
“This is how you fade yourself. This is a damn good way to fade my own feelings and fade the idea that I know ‘more’ than the market. I’m fading the concept that there’s some intellectual basis for this. The greatest enemy to you making money is yourself."
"Competitiveness and resilience are what define those who can play at the highest level. Someone who can take a punch, take criticism; someone who can be coached and like it."
