The Fragility of Optimizing Processes

We are not optimizing our systems to achieve an immediate goal or ambition because we recognize that markets over the course of time do change, they're non-stationary in nature. We've got a different process where we're holding a lot of our capital back effectively on the basis that we are preserving our capital. But it's a patient waiting game waiting for these opportunities to arise. And I suppose a further analogy is when you look at formula one racing. It's talking about this continual fight towards optimization versus fragility. There is a sacrifice going on when you optimize a process, invest your resources towards one particular opportunity. You are making yourself less able to cope with risk events when those conditions slightly

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