The first part is to develop a coherent portfolio theory: how to structure your trades, how to manage risk, etc. That truly is a scientific project in which you’re trying to develop things from first principles.
The second part is brainstorming for new trading ideas.It usually takes 70 to 100 false starts before we get something that we can use. I tell people that if you’re close to the North Pole, every direction you go in tends to be south.
We’ve been doing this for a long time, so at this point, most things we test degrade our system. But every year or two, we’ll find something that actually improves it.