Okay, let's be real. Winning the market game every time? That's a fantasy.

The title, admittedly, is a bit of a pep talk, designed to pique your interest and get you thinking about the topic.

And you might be asking, "What on earth is a Sophon?" For those not in the know, here's your spoiler alert—if you haven't watched or read "The Three-Body Problem," in any form, be it drama or novel, proceed with caution.

This isn't a huge spoiler, as Netflix has already let quite a bit slip about what Sophon does, even just through their posters.

Still here? Excellent. Let’s clarify who Sophon is.

In the novel, Sophon is portrayed as a female character—ethereal and stunning. She is often depicted wearing a kimono and brewing tea during peaceful times. 


In times of war, she switches to a camouflage suit and carries a long blade on her back. She's seductive and manipulative. However, she isn't human or even an alien. More precisely, she's an AI, an artificial intelligence created by the Trisolarans, the alien civilization in the story.

I won’t dive deep into the plot, but in short, she's incredibly powerful and capable of manipulating human minds in ways you wouldn't believe. Earth receives only two Sophons, but that's enough for them to deceive and manipulate all of humanity. How, you ask? In nerdy terms, think parallel processing. If an entity like Sophon can perform parallel processing, she can appear to be omnipresent. That’s her role in the story—unseen and omnipotent to human perception.

She originates from one of the two protons that were dispatched to Earth by the Trisolarans. In theory, a multidimensional entity can be expanded across a plane, enveloping the entire Earth like an endless blanket—that's what Netflix attempted to portray in the drama, albeit with less-than-stellar visual effects.

The Trisolarans, an alien civilization featured in the novel, unfolded a proton into two dimensions, infused it with an immense amount of data, and then refolded it, effectively transforming it into a supercomputer known as a Sophon.

Think of Sophon not just as any AGI, but an alien AGI, sophisticated enough to manipulate human minds in ways beyond our comprehension. She can be omnipresent, weaving deceptions you wouldn’t even dare to imagine.

Recall that Netflix poster, right? The one with a countdown in the protagonist’s eyes. That's Sophon’s handiwork. The countdown itself is meaningless. It's merely a tactic to unsettle the protagonist's mind, to render him or her feeling powerless. Ultimately, nothing significant occurs when the countdown hits zero.

Sophon meddles with the intellect of every scientist on Earth, leading them to doubt the very foundations of physics. All experimental outcomes appear erroneous due to Sophon's tampering. Did I mention her ability to parallel process? She can permeate every lab, every experiment, every mind. Initially, two protons—two Sophons—were sufficient to bamboozle all of humanity. Despite more Sophons being sent later, truthfully, one was enough to achieve this global deception.

This concept of Sophon isn’t new. It echoes characters and motifs from other narratives, films, and folklore—Medusa, Sirens, Succubi. Sound familiar? All these figures are seductive, manipulative, often depicted as stunningly beautiful, just like Sophon. Their allure is undeniable, their beauty captivating, their seduction irresistible. But beneath the surface, they are lethal deceivers and manipulators.

The film 곡성 (The Wailing) provides a vivid illustration of the impact a character like this can have. Under their enchantment, resistance to their charm, beauty, and seduction seems futile.

Interestingly, Sophon does not reveal her true form to humans until later in the novel. Netflix, however, jumps the gun by introducing her prominently right from the beginning, altering the narrative's suspense.

This brings us to the crux of why I introduce Sophon in this essay. It's crucial not to dismiss her as merely a Sci-Fi character. In many ways, Sophon manifests in our daily lives.

Invariably, you'll encounter your own Sophon in life.

I often liken the stock market to 곡성—it's the ultimate battlefield.

Once Sophon decides to deceive you, it's game over. You won't even realize she's active. You won’t grasp what she's made of or what she’s capable of.

There’s a reason I criticize Netflix’s approach. When humanity learns that the Trisolarans sent only two protons to Earth, their initial thought is, "What harm could two protons do?"

Yet, these unfolded multidimensional protons, these Sophons, were sufficient to deceive all of humanity. In later parts of the novel, Sophons even wield blades to kill real people. Although constrained from destroying Earth or humanity entirely, they are lethal when necessary.

Imagine now that the stock market is akin to a Sophon. Picture it as a multidimensional entity, unfolded into two dimensions, programmed with a vast amount of data, then refolded, thus becoming a supercomputer with alien technology, traversing multiple dimensions, deceiving everyone involved.

If you've dabbled in the stock market, you might find resonance with what I'm describing, because you understand how deceptively it operates, almost as if it can read your thoughts and act in response. How is it possible for the market to deceive so many simultaneously?

Medusa, Sirens, Succubi, Sophon—pick any one of them to symbolize the market, and there you have your explanation.

In the novel, uncertainty prevails; no one can truly know if they are under Sophon’s influence. She might be invisible, yet she sees, hears, and knows everything about you. To escape her surveillance, characters create a Sophon-resistant space—a cramped, windowless room that shields them from her detection.

Even after the Trisolarans declare Sophon’s mission over, humanity remains paranoid, unconvinced of their absence. This is the level of fear Sophon instills.

Drawing from my experiences, the stock market and other financially-driven environments exhibit similar traits. If you’re skeptical, it’s probably because you haven't yet encountered your own Sophon. But one day, you will, and she might just unravel you. When that happens, remember this essay.

Now, let’s talk strategy—how to construct your own "panic room" against Sophon in the market, akin to what they did in the novel.

Sophon strikes with logic, reason, facts, and data, crafting narratives so compelling that doubt seems irrational.

Why not counteract her using the same tools: steadfast logic, solid reason, indisputable facts, and firm data?

No, defeating her is not possible, but survival is. You can learn to co-exist with her, and perhaps even prosper alongside her.

Here comes a real spoiler, so if you’re not prepared for the end of the novel, it’s best to stop reading this essay now.

Ready?

The final protector of humanity's lingering hope in the novel is that very kimono-wearing, blade-wielding Sophon.

Now, let's delve into the strategy against Sophon's deception.

Imagine Sophon tries to deceive you into believing something, akin to scenarios depicted in "The Three-Body Problem" series. It’s important to note that it's a trilogy, not a single novel. The Netflix drama amalgamates all three books into one series, somewhat diluting the original essence of the novels. For a purer experience, I recommend reading the books before watching the adaptation.

Back to the strategy.

The first step in countering Sophon's deception is acknowledging her existence. You cannot combat an adversary you don't recognize, understand, or perhaps most dangerously, underestimate. Sophon is real, formidable, omnipresent, and actively deceiving you. Accepting this is crucial—it’s similar to an alcoholic acknowledging their addiction. If you harbor any doubts about Sophon's existence, her influence is likely already upon you. If you believe you can outwit or defeat her, you're also under her influence. Essentially, if you fail to recognize this, you are, well, for lack of a better term, fucked.

If you struggle with this first step, perhaps it's best to disengage from this essay now.

Assuming you can acknowledge that you are perpetually under Sophon’s influence, let’s move to the second step.

For any belief Sophon wants you to hold, practice a balanced skepticism. Calculate it as a weighted average: 0.5 x belief + 0.5 x disbelief.

This simple mathematical approach effectively neutralizes her attempts to sway you entirely one way or another. No matter which direction Sophon tries to lead you, by assigning equal weight to the opposite view, you maintain your equilibrium.

Resist the temptation to use options or futures contracts to manage risk. If you find yourself drawn to these financial instruments, consider that perhaps Sophon wants you to believe in their safety—only for you to suffer inevitable losses later.

There will come a time when you must decide between belief and disbelief, and you won't be able to predict when. The inherent limitation of the strategy I've described is well known to Sophon. It becomes a test of your patience and endurance—qualities that many of us, humans, lack.

Sophon, or the market personified, will employ every tactic to bait, trick, provoke, panic, or terrify you into making a rash and irreversible decision. She is designed to turn your life into turmoil.

Maintaining a balance of 0.5 belief and 0.5 disbelief is a grueling task for anyone in the market, no matter how rational or composed you believe yourself to be. Eventually, you will be forced to choose a side, and that’s precisely when Sophon will strike. She understands your psyche perfectly. Imagine an AI trained on every conceivable human data point—her capabilities are truly daunting.

Interestingly, in reality, we are embedding little Sophons into the market ourselves. AI models are currently being used to predict market movements, execute trades, manipulate market conditions, and even deceive other players. Do not be naive enough to think you can outsmart these 'little Sophons'. Even a single AI model can outmaneuver you. Collectively, they represent an insurmountable challenge.

Acknowledge this reality. If you can't, it might be wise to disengage from this essay now.

Sophon knows everyone has a breaking point. She bides her time, luring you with promises and temptations, making it almost impossible to look away from her captivating presence.

Then, at your most vulnerable, when you finally pick a side and commit fully, Sophon will turn the tables, destroying your position by shifting everything in the opposite direction.

If you've had a similar experience in the market, you'll understand exactly what I'm talking about.

Now, let’s discuss your last stand in this ongoing battle against Sophon's cunning strategies.

Engage a partner in your market strategy. Interestingly, for most, it seems humanly impossible to share one's investment portfolio, even with a spouse. However, doing what feels humanly impossible might just be the key to countering Sophon. Since she thrives on deceiving humans, stepping outside typical human behaviors could be your best defense.

Your partner could help maintain the balance of 0.5 belief and 0.5 disbelief while you make more definitive decisions.

Sophon finds it more challenging to manipulate two individuals simultaneously, especially when they hold different views. This creates a strategic advantage for both you and your partner.

With this setup, regardless of Sophon’s moves, you will always have a portion of correctness on your side. Here’s how it works: if you go all-in and Sophon strikes, causing you to lose, your partner, who may have adopted a more conservative position like holding cash, still retains half of the portfolio.

Again, avoid the allure of derivatives like options or futures. These are not tools to use against Sophon; they’re more like gateways into her realm of trickery.

When I suggest going in the opposite direction, I mean straightforward strategies like maintaining long positions or holding onto cash—no short selling, no options, no futures.

Let's break down the math: Suppose your joint portfolio totals $100, which you split equally, giving $50 to your partner. If you invest all your $50 and lose it entirely, while your partner loses only half, your partner will have $25 remaining. Conversely, if you double your $50 to $100, your gain is $50, and your partner's gain $25, bringing your combined total gains to $75. In essence, your partner's portfolio remains relatively stable, while yours fluctuates with market conditions. The total portfolio is only lost if both of you go all-in and lose. You may adjust the investment weights based on your risk tolerance and market dynamics, but the fundamental strategy remains the same.

This strategy assumes that your partner’s investments directly mirror yours in terms of stock selections. Your partner does not actively select stocks; instead, they passively replicate your investment choices. You are the sole decision-maker in this arrangement. It's important to remember this distinction: while you lead the investment decisions, you must never directly manage or alter your partner's holdings. Their investments are strictly off-limits to you; you can instruct them to mirror your actions, but the moment you intervene with their investments directly, the strategy falls apart.

When guiding your partner on what actions to take, it's crucial to explain your rationale behind each decision. Encourage your partner not just to follow but to understand and question your choices, providing feedback where necessary. This open line of communication fosters a collaborative environment and ensures that decisions are made with mutual consent and understanding. Maintaining this level of transparency and respect is essential; without it, the effectiveness of the strategy will be compromised.

Don’t worry if your partner is not a financial expert. In fact, the less they know about the market, the better. This limited knowledge can help shield them from being swayed by Sophon’s deceptions. Their role is straightforward: to mirror your actions without making independent financial decisions. All that’s required of them is to remain rational and follow your lead consistently.

This strategy brings peace of mind. You don’t need to worry about Sophon’s next move. You are always prepared for the worst, ready for the best, and maintained in balance.

This approach is difficult, not just conceptually but also in practice. Despite talking about this strategy publicly for over a decade, only a few have managed to implement it—often, sadly, after losing everything to Sophon and realizing too late the critical importance of this approach.

Another challenging aspect is the need for a trustworthy partner, ideally your significant other, given the unparalleled level of trust and understanding in such a relationship. However, let's be realistic: the harsh nature of the market means it’s difficult to trust even those closest to you with your financial decisions. If your partner is also involved in the market and under Sophon’s sway, your combined efforts might be compromised.

To effectively partner with someone against Sophon, two nearly impossible conditions must be met: you should be able to trust them with your life, and they should be minimally influenced by Sophon.

Unfortunately, finding such a trustworthy partner isn't always possible. If you're in a situation where you can't share this level of trust with someone, then, frankly, you're shit out of luck. In this scenario, the best course of action might be to step away from the game entirely. Remember, the premise is that you can't defeat Sophon; this strategy is solely about survival, not victory. Logically, if you don't have a partner who can help you survive, you're in a tough spot. So, it might be wise to exit this Boss arena of the game.

Believing that you can outsmart Sophon solo is a serious mistake, one that could have nearly life-threatening consequences.

Oh, and did I mention that in the novel, Sophon actually kills? Yes, with those killing skills, she's determined to protect the last remnants of humanity in the unimaginably distant future.

Yeah, what are the chances? Who am I kidding?

If you're single, your first task is to find a significant other whom you can trust with your life—not just your money, your life. That's a condition you can't afford to overlook.

I'll say it again: if you can't find such a person, it's best to just get the fuck out.

P.S. 

To further encourage those interested in this strategy, I'll share some personal details.

My portfolio: 30%

Wife's portfolio: 70%

Achieving this was almost humanly impossible, but I gradually shifted the weight because her long-term returns consistently outperform mine—by about three times, no less. Ignoring such a disparity would be foolish.

Crucially, she does not make any investment decisions; I handle all the strategy and planning but do not directly manage her portfolio. Instead, I guide her on what actions to take, sometimes including tasks I can't undertake myself. This underscores the importance of having a partner who can provide balance and keep you grounded.

This approach has only been successful when strictly adhered to. Any deviation, often born from overconfidence, has led to losses. Sophon is always ready to exploit mistakes, which I am thankful for—it reinforces the importance of maintaining this disciplined approach.

If your portfolio is weighted more heavily than your partner's, you might be too confident and have yet to learn from past errors.

P.S. 2 

A 99:1 (partner's versus mine) ratio might seem humbling, but it often breeds complacency. It’s important not to reduce your resistance to the point where you become immune to the challenges Sophon presents. 

Without experiencing pain, you cannot fully understand her impact. You should be sensitive enough to feel pain, yet resilient enough not to be overwhelmed by it. You must endure it without becoming indifferent. 

Like a well-trained AI model, you need to determine your optimal weight by continually adjusting and refining your approaches. 

In my opinion, never drop below a 30% stake in your own decisions.