Why financial returns are not normally distributed, why extreme events are not anomalies, and why the world that actually exists is the world for which trend following was built PREVIOUS: THE GEOMETRY OF WEALTH | Episode 3 of 15: The...
Why the most trusted metric in finance is optimised for a world that does not exist, and how it hides the geometric superiority of the processes that protect compounding PREVIOUS: THE GEOMETRY OF WEALTH | Episode 2 of 15: The...
Why losses and gains are not mirror images, and why this asymmetry is the most important force acting on your wealth PREVIOUS: THE GEOMETRY OF WEALTH | Episode 1 of 15: The Lie of the Average | NEXT: THE GEOMETRY...
Why the number the industry quotes you is mathematically guaranteed to overstate your wealth NEXT: THE GEOMETRY OF WEALTH | Episode 2 of 15: The Asymmetry Trap In 2000, a 58-year-old teacher in Ohio invested her retirement savings in a...
Eight articles. Thirty-eight years of science. One verdict. Over the past two weeks, we published an eight-part series that asked a question the mainstream of finance has been unable to answer for decades: why do trends exist? We did not...
What Complexity Economics Means for Your Trading Eight principles from thirty-eight years of Santa Fe science, translated into the language of portfolio construction, risk management, and the practice of following trends I began this series with a question. Why do...
The Economy on a Computer From a single artificial stock to entire economies: how the institutions that regulate the world’s financial systems are abandoning the equilibrium framework, and what that means for the strategies built on its failure On February...
The Artificial Stock Market When physicists built a market from scratch and it spontaneously produced every pattern that trend followers know by heart, it proved something profound about where returns come from It began with a bet. In 1989, at...
The Physicist Who Beat the House Twice From roulette wheels to Wall Street to simulating entire economies, and what one physicist’s journey reveals about the limits of prediction and the power of responsive strategy The idea of using physics to...
All Systems Will Be Gamed Why adaptive agents always find the cracks, why equilibrium thinking cannot see them coming, and why the programme that assumes boundaries will break is the one that survives There is a general rule in social...
