Category Archives: Risk Management

Financial Media and Trading Gurus Provide an Edge

The edge the financial media and trading gurus provide comes in the form of dumb money needed for systematic and skilled traders to realize alpha.

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Arithmetic Versus Geometric Mean Conundrum

Although I liked the article “You Are Not a Monte-Carlo Simulation”, by Corey Hoffstein, there was a conundrum in it that needs to be addressed because I think that is important to do since it is the source of confusion.

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Derivatives of Derivatives of Derivatives And The Modern Alchemists

The difference between the old alchemists and the modern financial alchemists is that actions of the latter group endanger the stability of an already fragile financial system.

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Highest Returns Are Often Realized During Early Stages Of Bubble Formations

Chasing bubbles during the last stages of their formation results in a much lower return to risk ratio as it is shown below with examples from bitcoin and Amazon stock.

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Dot Com To the Power of n

Cryptocurrencies, ICOs and related derivatives are a potential dot com to the power of n bubble. The risk of economic collapse due to this market is real but underestimated.

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