Successful traders manage risk. And you can’t manage what you can’t measure. There are widely used metrics designed to help quantify risk-adjusted reward, but they have their limitations. One number that investors like to look at when evaluating the track records of commodities trading advisors is the Sharpe Ratio. This number does measure reward-to-risk, but […]
Posted on September 28th, 2004 by Nils
Filed under: links, pictures, projects, trading | 3 Comments »
My brother-in-law, Tom, recently sent me a New Yorker review of a book entitled The Paradox of Choice. (Ironically, I didn’t run across this review on my own because, as Greg said during a conversation we had over dinner this week, I prefer The Atlantic to The New Yorker because it comes out less frequently—there’s […]
Posted on April 29th, 2004 by Nils
Filed under: culture, links, trading, writing & books | Comments Off
Imagine playing a game for money in which marbles are drawn out of a bag and then replaced. 60% of the marbles are white. If one of the white marbles is drawn out, you win whatever you risked. The other 40% are blue. If one of the blue marbles is drawn, then you lose whatever […]
Posted on October 6th, 2003 by Nils
Filed under: trading | 2 Comments »
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