Risk and Edge
The Midpoint From 1 to 9 is…3?
numeracy practice
Risk and Edge
Options and Volatility
A Simple Demonstration of Return Vs Volatility
Volatility is a quadratic drag on returns
How Markets Work
Insights From The Warrant Puzzle via Financial Hacking
Financial Hacking is one of the best books applying intuition to common problems in trading and investing
Risk and Edge
Understanding Log Returns
The basics of log returns
Risk and Edge
Geometric vs Arithmetic Mean In The Wild
Using SP500 returns to distinguish geometric (compounded) returns from average arithmetic returns
Risk and Edge
Well What Did You “Expect”?
Understand the meaning of "average" when returns compounds
Options and Volatility
Examples Of Comparing Interest Rates With Different Compounding Intervals
Translating rates of return over different time periods
Risk and Edge
Liquidity Ostrich
Thoughts on how we perceive risk and liquidity
Risk and Edge
Calibrated Confidence
Being a strong bettor requires well-tuned meta-knowledge
Risk and Edge
An Example Of Using Probability To Build An Intuition For Correlation
How probability relates to correlation
How Markets Work
Trading Is A Team Sport
The lone genius trader is a myth
Risk and Edge
Bet Sizing Is Not Intuitive
Even people that should no better bet sums that are wildly suboptimal
Risk and Edge
Another Kind Of Mean
Harmonic means for ratios
Risk and Edge
The Benefit Of Betting Culture
Practicing confidence intervals
Options and Volatility
The Gamma Of Levered ETFs
Applying the concept of option gamma to understand how levered ETF deltas trigger daily delta rebalances
Options Theory
If You Make Money Every Day, You’re Not Maximizing
A treatise on hedging