Today, I started reading Principles by Ray Dalio.
In the opening pages, Ray discusses some of his core principles, and they immediately grabbed my attention.
Ray essentially talks about systematizing decision-making. Making decisions via computer has advantages, such as computers processing vastly more information than we can. They work faster and, more importantly, unemotionally, which reduces biases. I immediately realized that this is similar to what we do with systematic trading. We are essentially systematizing trading through specific edges (principles), and we also do it with computers. I agree with Ray: systematizing decision-making in every area will ‘not only improve our economic, investment, and management decisions,’ it will ‘help us make better decisions in every aspect of our lives.’ In the uncertainty of life, making clear decisions will make our lives easier and better. This is what we humans do. We create — sometimes imaginary — systems to improve our lives. There are no politics, no human or animal rights, and no economics in nature. We create systems for better futures, and this is what we need to start doing in our decision-making.