This author has yet to write their bio.Meanwhile lets just say that we are proud lbernut contributed a whooping 158 entries.
This is an exciting time. The book is taking shape. It is now time to choose a cover. You will get to participate in the making by ranking your 3 favourite covers in descending order. The cover that will have the most votes will be selected. Also, if You have suggestions, please do not hesitate. This is […]
Is short selling bad for your psyche? by Laurent Bernut Answer by Laurent Bernut: “Lo que no mata engorda”, what does not kill you makes you fat. Bob Baerker, a respected short-seller, sums it well. You are probably alluding to the good and evil battle between the righteous short seller who perceives wrong, the arrogant […]
What is the future of Algorithmic Trading? by Laurent Bernut Answer by Laurent Bernut: If investment is a process, then automation is the natural conclusion. “He, who controls the past controls the future”, George Orwell. Before attempting to guess and inevitably fail what the future holds in store for us, let’s take a step back […]
How do normal day traders manage to profit 200-300% annually and hedge funds are able to return o… by Laurent Bernut Answer by Laurent Bernut: Day traders have one person to answer to: themselves, HF dudes don’t. Sticky Vs Fast money. It is not that they can generate good returns, it is that their clients […]
How should I manage a client’s portfolio if he wants a 8-10% return and no negative years worse t… by Laurent Bernut Answer by Laurent Bernut: Experience has taught me that people like this are a plague. They are not risk adverse. They are conservative to the point of being risk seeking: by refusing to […]
What's the best way to learn portfolio optimization? by Laurent Bernut Answer by Laurent Bernut: In theory, theory and practice are the same. In practice, they are not. Most market participants optimise the wrong thing for the wrong reasons. Modern Portfolio Theory was revolutionary Half a century Modern Portfolio Theory was revolutionary in its days, […]
The best answer to that question comes from my ex-boss, mentor and more importantly dude friend: “You are at capacity when inertia sets in” This means that when managers become reluctant to take a trade, this is when they reach capacity. It might be at 100M or at 2B. It is after all subjective. The […]
If 90% of traders lose and 10% wins, are those 10% disproportionally made up of very high IQ peop… by Laurent Bernut Answer by Laurent Bernut: No, but for different reasons that the instructive and brilliant answers given by people far more intelligent than yours truly. Making money in the market is a side effect. […]
I’m good at shorting, is it possible to start a short biased hedge fund? by Laurent Bernut Answer by Laurent Bernut: Excellent answer from Bill Chen, to which there is little to add. In my opinion, short-selling is widely misunderstood even by professional sophisticated investors. To add insult to injury, FED and ECB are the […]
How significant is following the news for forex trading? by Laurent Bernut Answer by Laurent Bernut: I know two types of traders: those who trade the newsflow and those who make money. 1) How the brain perceives news 2) What news matters and what does not and how to know which is which 3) Stop […]