fbpx

Backtests

25 07, 2017

Profiting from the Recklessness of Others

By |2020-04-27T17:19:30+00:00July 25th, 2017|Investing, Postmodern Finance|Comments Off on Profiting from the Recklessness of Others

A couple months ago, I wrote about the dangers of levered ETFs, showing how these products designed to juice investor's returns end up eroding capital due to the subtle mathematical logic of compounding. In my last post, I followed up on the topic by describing the Kelly Criterion, a mathematical [...]

20 06, 2017

The Line Between Aggressive and Crazy

By |2023-12-12T22:39:49+00:00June 20th, 2017|Investing, Postmodern Finance|Comments Off on The Line Between Aggressive and Crazy

Suppose I offer you a bet. Flip a coin, heads you lose your entire bet, tails you win it back plus one and a half times, so a ten dollar bet becomes $25. And furthermore I'll let you keep making this bet as many times as you like over the [...]

X