trendie
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An interesting TEDx on risk.
Broad subject, but lots of resonances with trading.
It really deals with the reasons we tend to mis-allocate reasons for failure.
Talk revolves around the quote by Yass, a fund manager of Susquehanna.
"The biggest risk is that you have a losing strategy when you think you have a winning strategy."
And how people, whilst having a losing strategy seek to delude themselves for the reason for failing.
Covers Self-serving Bias:
Good outcomes are attributed to good decisions.
Bad outcomes attributed to bad luck, (news, spikes, opening gaps, etc)
Covers mis-diagnosing risk management for failure, instead of losing strategy.
(good outcome = signal. bad outcome attributed to noise)
Example: start-ups.
No start-up goes broke believing their product is rubbish, only that they didnt have enough start-up capital, etc.
I think it has some good, broad insights applicable to trading.
Broad subject, but lots of resonances with trading.
It really deals with the reasons we tend to mis-allocate reasons for failure.
Talk revolves around the quote by Yass, a fund manager of Susquehanna.
"The biggest risk is that you have a losing strategy when you think you have a winning strategy."
And how people, whilst having a losing strategy seek to delude themselves for the reason for failing.
Covers Self-serving Bias:
Good outcomes are attributed to good decisions.
Bad outcomes attributed to bad luck, (news, spikes, opening gaps, etc)
Covers mis-diagnosing risk management for failure, instead of losing strategy.
(good outcome = signal. bad outcome attributed to noise)
Example: start-ups.
No start-up goes broke believing their product is rubbish, only that they didnt have enough start-up capital, etc.
I think it has some good, broad insights applicable to trading.
