Search results

She said she was profitable and her strategy was low risk all while hemorrhaging money out of her fund account with her trading. Also she took investor deposits straight into her personal bank account and took some for herself. Ex. take $30k from investor, but only move $28k into the fund.

Looks like we've found the next person on the chopping block.

When I heard that the Fed said they'd be on the look out for "Brexit" risk even before NFP, I knew there was no hope of rate hikes this year.

He's talking about discount rates not growth.

Of course everyone is too "above it all" to read ZH :rolleyes:

Why bother shorting? Literally nothing matters anymore. NQ green by EOD tomorrow would not surprise me. This is ridiculous. It's not even that I'm being bearish that gets me mad. I can take being wrong there. It's as they say on zerohedge, the Fed is using the markets as a policy tool which irks...

Really just need to take out Chiraq.

Isn't that just saying your Sharpe < 1? SPX has a Sharpe < 1. Would you buy and hold SPX?

Outside of the US cash USD would probably be good.

I'd say any standard info you can find on trader psychology/biases is fine. The real benefit (at least in my experience) is in actively integrating what you read into your trading in real time and also when reviewing your trading. To be able to sit back from the market action, divorce yourself...

You don't. That's why you size the position such that it won't blow you out if you are wrong.

Fair enough. Well that was a fun argument(at least I think so :)).

Valuing an asset along the lines of benefits becomes highly context dependent. You'd have to look at how that product performs on its own and relative to other assets. Say for variance swaps, you could pitch them as a type of crash insurance with "purer" exposure than options. Well how much do...

Yes, I was thinking this earlier. One way to start in valuing a variance swap would be to ask why do people buy them? What benefit do they provide? Then value that benefit. What I'm getting at is a more holistic valuation of an asset. That may not gel with you but I think discounted cash flows...

I'm not being purposely ambiguous. I'm just allowing for my argument to be used both on the long and short side despite this thread being about short vol. My discount rate "jump" is in reference to the difference in the discount rate at time of purchase and time of sale. It changes continuously...

I never said raise. I said more favorable. Which assuming you are long the asset would mean a lower one. Which are you asking here? That the cash flows are uncertain or that they're un-valuable?

So a more favorable discount rate doesn't increase NPV? News to me. Thanks oh-wise-one.

You don't seem to understand what you said. The lowering of the risk premium can only be a one-off event. It's in effect an increase in the say, P/E ratio of the stock. It moves up to a certain point not go up forever. Therefore it can only be a one-off boost to returns(only if the move is...

No, you just said short vol produces a one time capital gain in an equity as its future cash flows get discounted at a more favorable rate.

Maverick, you seem to be grasping at 100 different straws in defense of your claim that short vol isn't an asset class.