This author has yet to write their bio.Meanwhile lets just say that we are proud lbernut contributed a whooping 158 entries.
How does one address the issue of regime shift in algorithmic trading? by Laurent Bernut Answer by Laurent Bernut: Fascinating topic that has kept me awake for years. It is a thorny issue. As the patent clerk Einstein used to say: answer are not at the same level as questions. Answer is not at the […]
Can the Quant Meltdown of August 2007 repeat again in the future? by Laurent Bernut Answer by Laurent Bernut: This is an excerpt from the book i am writing on Short selling Start with the Shorts in mind In August 2007, cross sectional volatility took all markets around the world by surprise. Indices did not […]
Most market participants look at the short-side through their Long Only perspective. They believe that if they apply the same logic that has made their success on the long side to the short side, then it should work. It should work but it does not. The Short side is still Terra Incognita, a vast continent populated with savage […]
How can Renaissance Technologies make so much money from financial markets by hiring scientists/m… by Laurent Bernut Answer by Laurent Bernut: I have never worked at Renaissance, so please take my answer with a grain of salt, but here is a first hand story that could shed some light. On June 22nd in NYC, my […]
My answer to What’s the biggest mistake that stock market investors make? Answer by Laurent Bernut: Short answer: Absence of exit plan. The only soldiers who go to combat w/o an exit plan are Kamikaze. They don’t need one because they expect to die. Unfortunately so do a lot of market participants. The apparent simplicity of […]
My answer to What is the point of hedging a portfolio instead of closing losing positions? Answer by Laurent Bernut: It seems like You are experiencing pain right now. This is clouding your judgment. So, let&s do a step-by-step approach’ 1. Emotional relief, 2. Boundaries, 3. Recovery 4. New rules 1. Emotional and Financial capitals: […]
My answer to Do simpler trading strategies make the psychological aspects of trading more manageable thus making th… Answer by Laurent Bernut: Excellent question. Complexity is a form of laziness. 1) The privilege of simplicity is that it imposes itself, even to those who do not understand its sophistication 2) Simplicity is the exact opposite […]
Steven Spielberg’s movie Jaws has changed forever the way we perceive sharks. Did you know that deep in the comfort of your house lies something 150 times deadlier than any great white shark ? The probability of dying falling out of bed is 1 in 2 million. The probability of dying as a result of […]
My answer to If most people lose in the stock market or gambling, then would I make money by doing the opposite of … Answer by Laurent Bernut: Statistically speaking, You would be exactly in the same position as the person You go against There is something called the serenity prayer. Here is a simple […]
My answer to How do i improve the sharpe ratio of my trading strategy? Answer by Laurent Bernut: Reverse engineering Sharpe ratio is the trademark of some very large shops, with a large pension fund clientele… Like diet, it is simple in theory but not easy in practice. How to boost Your Sharpe The basic […]