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Every single Sh 1 you invest into fixed deposit or MMF accounts, stock market, treasury bills, bonds or SACCO deposits - gives your employer a little less power over you.
The goal is to build passive income streams that will eventually replace your salary.
Keep pushing.
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How to build a low-risk portfolio on Sh 70K net salary:
As usual, we insist on 20% allocation to savings and investments, that's Sh 14,000.
~Put 9000 in an MMF
~Put 5000 in a SACCO BOSA
End of year 1:
MMF = 120,960 net average 12%
SACCO = 67,200 net average 12%
Total = 188,160
Move Sh 100,000 from MMF to T-bonds.
End of year 2:
MMF = 144,435
SACCO = 142,464
T-bond = 100,000 excluding 16,000 interests (transfer to MMF)
*New MMF balance: 160,435
Total portfolio value: 402,899
If you had merely saved 14,000 monthly for 2 years = 336,000
+66,899 from just setting up, automating contributions, and living your life.
What about year 3, 4, or 5? 🤯
Here are 5 laws of the Universe that are surprisingly accurate:
1. Murphy’s law.
Anything that can go wrong, will go wrong.
2. Kidlin’s law.
When you write down a problem clearly, the matter is half solved.
3. Falkland law.
When there is no need to make a decision, don’t make a decision.
4. Wilson’s law.
Prioritize knowledge and learning, and money will continue to flow.
5. Gilbert’s law.
It’s always your responsibility to find the best way to achieve the desired result.
Trading is an unfair game. We have machine learning and algorithms. But Hedge funds and the Wall Street elite have an edge:
Better tools,
more information,
automated execution.
That ends tomorrow. 🧵
Tomorrow, Jason Strimpel and I will reveal Omega during our live algorithmic training and course launch event. Here's a taste of Jason's proprietary Omega Hedge fund in a box demo:
1. Omega is a hedge fund in a box.
Omega solves the toughest problem "the last mile". In data science, this is the equivalent of the ML Ops part. Omega is how you take your algorithmic trading strategy into production.
2. Omega makes execution easy.
Need to execute 100 orders? No problem.
Need to log trades in your trade log SQL database? No problem.
Need to watch your live portfolio and manage risk? No problem.
3. Omega is designed for data scientists and coders.
It's built in Python. And if you're a data scientist who wants to trade with algorithms, then you're going to feel right at home with Omega.
If you want to see Jason and I share what we've been working on for 12 months (and see the app that Jason poured 1000+ hours of development into)...
👉 Then register here (seats are limited): https://t.co/q8XAqpjX9O
Understanding P-Values is essential for improving regression models. In 2 minutes, learn what took me 2 years to figure out.
1. The p-value: A p-value, in statistics, is a measure used to assess the strength of the evidence against a null hypothesis.
2. Null Hypothesis (H0): This is a general statement or default position that there is no relationship between two measured phenomena or no association among groups. For example, the regressor does not affect the outcome.
3. Alternative Hypothesis (H1): This is what you want to test for. It is often the opposite of the null hypothesis. For example, that the regressor does affect the outcome.
4. Calculating the p-value: The p-value for each coefficient is typically calculated using the t-test. There are several steps involved. Let's break them down.
5. Coefficient Estimate: In a regression model, you have estimates of coefficients (β) for each predictor. These coefficients represent the change in the dependent variable for a one-unit change in the predictor, holding all other predictors constant.
6. Standard Error of the Coefficient: The standard error (SE) measures the accuracy with which a sample represents a population. In regression, the SE of a coefficient estimate indicates how much variability there is in the estimate of the coefficient.
7. Test Statistic (T): The test statistic for each coefficient in a regression model is calculated by dividing the Coefficient Estimate / Standard Error of the Coefficient. This gives you a t-value.
8. Degrees of Freedom: The degrees of freedom (df) for this test are usually calculated as the number of observations minus the number of parameters being estimated (including the intercept).
9. P-Value Calculation: The p-value is then determined by comparing the calculated t-value to the t-distribution with the appropriate degrees of freedom. The area under the t-distribution curve, beyond the calculated t-value, gives the p-value.
10. Interpretation: A small p-value (usually ≤ 0.05) indicates that it is unlikely to observe such a data pattern if the null hypothesis were true, suggesting that the predictor is a significant contributor to the model.
===
Need help applying data science to business?
I'd like to help. Here's how:
👉 My Free 10 Skills Webinar: I put together a free on-demand workshop that covers the 10 skills that helped me make the transition to Data Scientist: https://t.co/LR39RJ5XKB
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