A Trader Journal

This probably is more applicable to individual traders as fund's size and constraints a fund manager face are different. I like to hear a fund manager's perspective as well on this topic though.

Asset Diversification:
My take is most assets are correlated in recent years. This is probably due to growing popularity of the ETFs. So asset diversification is more useful only if an investment methodology uses dynamic correlations (instead of static correlations). But working off dynamic correlations require short term timing and shorter investment horizons. On other hand this is not the preference of most people or financial planners.

Time Diversification:
By time diversification I mean a portfolio trades on multiple time frames with same set of markets (may be a subset of markets for lower time frames). For example like using same/different methodologies simultaneously on a minute, daily and monthly charts with corresponding risk limits. The challenge here probably is time available for individual traders to spend on markets due to other constraints. Also not every one will like spending their time on markets and there are many better things one can do with their time.

System Diversification:
Another way to diversify is based off system diversification but I think biggest hurdle probably there for individual traders is to be able to come up with good non correlated systems. Often profitable systems for a trader are those that are an extension of the trader's personality. I mean like some personalities are more suitable for trend trading while other for mean reversion or pair trading etc. So expecting an individual to come up with multiple good non correlated systems is like requiring to develop multiple personalities. Thoughts?

So?
Theoretically the best solution is doing all of above but probably is not practical for most. So in my opinion individual traders are better off either with time diversification managing on their own (or) just delegate to a fund/fund manager with a history of consistent and balanced returns over years.

I would like to hear your thoughts and feel free to point out any mistakes in the assumptions. Also the more the perspectives are different from the post, the better.