The combination of trend following and equities is not additive. It is geometrically synergistic: a blended portfolio produces terminal wealth greater than either component alone, with a maximum drawdown smaller than either component alone. This is what happens when two...
Diversification works when you don’t need it and fails when you do. Trend following does the opposite. It performs when everything else is falling apart PREVIOUS: THE GEOMETRY OF WEALTH | Episode 7 of 15: Letting Winners Run and Harvesting...
In a fat-tailed world, the majority of wealth creation comes from a tiny number of extraordinary months. Trend following is the only process systematically designed to stay on board when they arrive PREVIOUS: THE GEOMETRY OF WEALTH | Episode 6...
How cutting losses protects the compounding engine with convex efficiency, and why the willingness to be wrong often is the price of being right geometrically PREVIOUS: THE GEOMETRY OF WEALTH | Episode 5 of 15: Why Markets Trend,(And Why They...
Markets are complex adaptive systems. Trends are their emergent output. And trend following harvests a structural feature of reality, not a temporary anomaly PREVIOUS: THE GEOMETRY OF WEALTH | Episode 4 of 15: The Smooth World That Never Was| NEXT:...
The Natural History of Markets: A Field Guide to Finance as a Living System A ten-part series that examines markets the way a naturalist examines an ecosystem — and what it means for how you think about edge, survival, and...
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...
