In Schwager's "Market Wizards" he interviewed Larry Hite who came up with the gold standard for position sizing, which is to limit risk to 1% of total assets under management per position. In...
The goal of our walks in the wilderness park is to let the dog do his business and to safely get a healthy workout in nature (as opposed to the monotony of a treadmill gym workout). Although in...
The goal in systematic trading (and in life in general), is to minimize the gap between what we want to achieve and what we actually accomplish. What is systematic trading? It is the adherence to...
“I have nothing to offer but blood, toil, tears and sweat.” – Winston Churchill I always loved that Churchill quote. I think it’s an accurate description of our investment philosophy at The Tape...
According to Merriam-Webster’s dictionary risk is, the chance that an investment (such as a stock or commodity) will lose value. This definition erroneously assumes that not investing precludes...
We discuss two contrasting views of technical analysis in his article titled “Two Views of Technical Analysis”. These views cater to different market participants: speculators and commercial...
I have always believed that every active hedge strategy needs to answer the following three-part question: Percentage hedged Duration of the hedge Derivative instrument(s) used to hedge Percentage...
This article will try to illuminate why most retail traders fail at speculative trading. I would argue that the simplest reason for failure is that they are fighting the path of least resistance....
The 1% Rule Larry Hite famously posited the 1% rule in Schwager's, "Market Wizards". This risk management rule suggests risking no more than 100 basis points of total assets under management on any...
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