Description
Book SynopsisTable of ContentsAcknowledgments vii
Foreword ix
Aaron Brown
Introduction xiii
Chapter 1 Motivation 1
Know why you are doing a trade before you trade 1
Chapter 2 Adverse Selection 21
You’re never happy with the amount you traded 22
Chapter 3 Risk 41
Take only the risks you’re being paid to take Hedge the others 41
Chapter 4 Liquidity 71
Put on a risk using the most liquid instrument for that risk 72
Chapter 5 Edge 93
If you can’t explain your edge in five minutes, you don’t have a very good one 95
Chapter 6 Models 115
The model expresses the edge 115
Chapter 7 Costs and Capacity 141
If you think your costs are negligible relative to your edge, you’re wrong about at least one of them 142
Chapter 8 Possibility 167
Just because something has never happened doesn’t mean it can’t 171
Chapter 9 Alignment 197
Working to align everyone’s interests is time well spent 198
Chapter 10 Technology 217
If you don’t master technology and data, you’re losing to someone who does 220
Chapter 11 Adaptation 239
If you’re not getting better, you’re getting worse 240
Notes 261
Index 271
