If you believe the efficient markets hypothesis, don’t follow this blog

In order to help you understand how to improve your investment returns, dear reader,  I wanted to rant on how academic economists, supposedly the bastions of rational thinking, independent of commercial bias, the smartest of the smart, created and promoted a completely irrational theory, causing millions of people to not even consider investing for fear … Continue reading

Weekend Linkfest 100: Improved hedging methods and 10 smart programmer papers

So I decided to start publishing links I’ve collected recently, to share them with you. For the time being, I’ll just include a short description, and add whatever commentary I want. I arbitrarily decided start the numbering at 100. It reminds me of introductory classes in college. It doesn’t really mean anything, other than the … Continue reading

Optimal Position Sizing

I had a suspicion, that there must be a way to mathematically determine optimal position sizes. Ralph Vince, the author of the Handbook of Portfolio Mathematics: Formulas for Optimal Allocation and Leverage , beat me to the punch. In this volume, he summarizes his previous work, and describes in detail, a mathematical model, which helps … Continue reading