Blog Posts

Trading and investing isn’t about predicting or knowing the future. It’s about preparing for many possible ones. Monte Carlo simulations let us stress-test portfolios by running thousands of “what if” scenarios with different volatility and leverage assumptions. Instead of a single forecast, you see ranges of outcomes: steady growth paths, sudden collapses, and everything in […]

Bitcoin perpetual futures allow you to trade Bitcoin on leverage without worrying about expiration.  Traditional futures always settle on a set date, but perpetual futures roll on forever.  That flexibility makes them one of the most popular products in crypto trading today.  Given Bitcoin’s natural volatility – generally between 20%-150% annualized (though declining over time) […]

Taking a massive trading loss is a gut punch that all traders face. Even experienced traders have to accept that trading losses are part of it. But losses don’t have to mean the end of your trading career. Nothing goes in a straight line and step by step you can recover and make things even […]

The labor market and stock market are linked and we’ll go through the basic implications of how and why it’s important.   Key Takeaways – The Labor Market vs The Stock Market A tight labor market acts as a “contra-indicator” for future stock returns.  Low unemployment signals that policymakers may soon tighten monetary policy to […]

Trading is less about predicting the future and making bold bets and more about optimizing and controlling risk. For each unit of risk, how much return are you getting? Optimizers and risk models help you make better data-driven portfolio decisions. It helps you go from more of a beginner’s mindset to paying almost no attention […]

Having standard operating procedures (SOPs) is a must in trading. Trading without a system is effectively gambling. SOPs act like a living template or playbook that helps to turn the “chaos” of whatever you’re doing into structure. SOPs enforce consistency, discipline, and measurable improvement. It creates a framework you can measure and improve over time.  […]

How much money could I lose in a day (week, month, quarter, year) on a really bad day? What would the worst 5% or the worst 1% of days look like? You’re asking the same question that Value-at-Risk (VaR) tries to answer.  It’s one of the most widely used risk measures in finance because it […]

Harry Markowitz, who popularized modern portfolio theory, said that “diversification is the only free lunch in investing.” For most of the post-2008 period, the bull run in large-cap US equities meant that those who diversified well often found that lunch to be quite costly. If someone went from a 100% stocks portfolio to the 60/40 […]

Let’s look at some interesting facts about gold, with a natural focus on its financial and investment implications. Gold’s Unique Position as an Asset Gold is the prototypical “non-productive store of value” (NPSOV). It doesn’t generate cash flows, yet it retains value through scarcity and because it’s widely agreed that it has intrinsic value. (Contrast […]

One of the biggest problems in trading – and really in any career – is simply having too much to do. Especially when you’re first starting out, you have lots of decisions to make. Maybe you’re watching videos, reading articles, and everybody is saying all these different things. Cognitive load and decision fatigue are a […]