Easy games vs hard games in trading

In Trade Like a Quant Bootcamp, we talk about win-win risk premia harvesting. It’s a game where no one’s really competing for the edge. Think about VTI (Vanguard’s Total Stock Market ETF). You expect to make more than implied by the stock market’s cash flows (a risk premium) because holding these stocks is uncomfortable. They’re …

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On Having an Edge

The first thing you need as a trader is a clear edge. What do I mean by “edge?” Edge comes from a market inefficiency that means you can buy cheap and sell rich on average over the long run. Said differently, edge is positive expected value. Expected value is the return you expect to realise …

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