Steal them from other people
If you know other people are making money trading an idea, it is often a good idea to pursue it too.
This isn’t school. The market gods give no prizes for originality or showing your work.
An edge is an edge however you got to it.
But be smart about it.
Most of you don’t want to copy what AQR or Man Group is doing.
They have the burden of having to manage huge sums of money.
You can pick niches and edge cases and wrinkles.
Talk to your fellow degenerates, share freely, and be nice.
Apply things that you know work in other markets to new or illiquid markets
For many years, applying well-worn tradfi trading strategies to crypto was basically free money.
Brand new markets are especially wonderful because there’s no data on them, and many are too timid to get involved.
Doing stuff in brand new markets that makes sense and works in other markets has been very profitable for me.
Notice stuff from your own trading
Nobody really knows exactly why they make money.
You never figure it all out.
So you want to be constantly monitoring the results of your own trading, trying to isolate effects and understand cause and effect as much as possible.
Quite often, you’ll notice things that are inconsistent with your understanding of the world – and that often leads to identifying new ideas.
