In my latest conversation with Niels Kaastrup-Larsen on The Systematic Investor Series, we explored how markets actually build themselves, from a single trade to the fractal geometry of price. Every act in the market exerts impact. A trader buys,...
“What looks like noise in one frame becomes structure in another.” Seeing Order in the Noise At first glance, a market chart appears chaotic.Prices rise and fall without pattern, surging and collapsing in unpredictable bursts. Yet as we zoom out,...
Most investors think diversification waters down returns. They are wrong. Dead wrong. This belief comes from the neat Gaussian world of classical finance. Add more bets, and risk falls with the square root of the number of bets. Smooth curves....
Welcome to the Mini-Series: The Power of Process, a five-part exploration of the complexities of financial markets. This series delves into chaos theory, fractal dynamics, and complex adaptive systems, uncovering how markets are driven by ongoing interactions, feedback loops, and...
Welcome to the Mini-Series: The Power of Process, a five-part exploration of the complexities of financial markets. This series delves into chaos theory, fractal dynamics, and complex adaptive systems, uncovering how markets are driven by ongoing interactions, feedback loops, and...
Every model of a financial market is a counterfactual. It describes not the market as it is, but the market as it would be if the simplifying assumptions held. Sometimes those assumptions hold well enough to be useful. The...
The title of this article is not a paradox. It is a precise observation about how most participants approach financial markets, and why they struggle. Complexity, in the technical sense, is a property of systems whose behaviour emerges from...
