Risk and Edge
Measurement Not Prediction
Seeing the present clearly
Risk and Edge
Risk and Edge
The ‘Volatility Is A Risk’ Strawman
Risk is more than a single measure
Risk and Edge
How Much Extra Return Should You Demand For Illiquidity?
A market-based thought exercise for pricing the value of liquidity
Risk and Edge
Path: How Compounding Alters Return Distributions
See how the path of returns can alter the distribution of p/l independently of expectancy.
Risk and Edge
Lessons From The Layup – Corner 3 Spread
Practice relative value thinking
Options Theory
Mock Trading Options With Market Makers
How professional option traders trained
Risk and Edge
Fun Analogy Between Combinations and a Correlation Matrix
Math fun relating ideas
Risk and Edge
Where Does Convexity Come From?
Convexity is a fancy word for "my position size is not constant"
How Markets Work
Why You Don’t Get Paid For Diversifiable Risks
Examples of a counterintuitive aspect of portfolio theory
Risk and Edge
How Tails Constrain Investment Allocations
How low probability-events restrict advisable position sizes
How Markets Work
Your Portfolio Intuition Is Poor
Our instincts about the role of correlation are not well-tuned
Risk and Edge
Percents Are Tricky
Possible pitfalls of thinking in percents with ratios
Risk and Edge
Levered ETF/ETN tool
Compute the amount of dollars required to rebalance a levered exposure
How Markets Work
The difficulty with shorting and inverse positions
The brutal arithmetic behind shorting