Edge

Some old articles / statements are worth rereading. Here is one of my favorites: What is Edge ? The edge is knowing that you can fail and learn from it, and just get back up and in the game. The edge is knowing that people think your crazy, and they are right, but you don’t care what they think. The edge is knowing how to blow off steam a couple times a week, just so you can refocus on business

Why do we need Volatility Instruments

We need volatilty based trading instruments , the more the better. WHY? Well, if one thinks of options written, all the delta hedges based on Blackscholes break down if the volatility is a stochastic process. If Vol is a function of spot and time, it is fine, but most of the cases , one cannot assume that. So, if delta hedge of Black Scholes world is useless, what can one do ?

3 day effort

I guess it is not all that bad a tool, for a 3 day effort . I had to get this up and running - rails-postgres-gruff , for that is the only way I can think of analyzing why long shorts on a massive portfolio are not converging. Now that I have got a microscope in hand, hopfully it will be fun to look at individual stock level Mean reversion processes and learn what the hell happened in Jan - Mar 08.