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Risk Management
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Sam ColtExChangemaker
"So called Business Engineer"

Moar Vol and VIX with Jason Buck and Ben Eifert

Jason Buck and Tyler Pearson have been talking to a handful of Volatility traders on RV

Jason recently interviewed Ben Eifert who has amassed quite a following on twitter and also runs a fund called QVR. 

Their conversation is quite a sandwich (24 pages or 1h16 min of podcast) but fun quite insightful. Since the topic of Vol is quite complicated and filled with jargon so I used Otter.ai to make a transcript of the interview. The transcript is like 95 ish % correct, so the spelling can be off or a word might be off but you should be able to read it because of context. I fixed the worst parts myself and added some highlights and notes for myself. 
 

one thing is clear most of what Ben is doing should be Labelled as "Do not try this in your PA". 
Still, it's interesting to hear what these VIX people do in their 40h+ work weeks 😂

Have fun; 



 

 

Risk Taking

"You should study risk-taking, not risk management"

I realize a lot of people think Taleb is a dick but he makes a lot of good points here. We generally think about risk management in terms of a stop loss when we actually need a more comprehensive understanding of what risk and uncertainty are. I would encourage all of you to read his books. 

Several years ago now I was randomly sitting in a coffee shop reading a book on chaos theory and complexity. A random accounting professor noticed, started talking with me, and suggested one of Taleb's books. As I read the book, it completely changed my view of the world and finance. I would not be where I am today and ask the questions that I do without that seemingly random experience. 

Knowledge can be nonlinear in nature and we need to constantly search for the asymmetrical pieces of knowledge that will change the way we analyze the world. That is where truly good trades come from and not from reading the latest motley fool article.  

https://www.youtube.com/watch?v=4P47UTF0tZA

Relentless De-risking

How to practice a good Ruthless Risk Management using options.

IFF trade frame example:

 

https://www.options-course.com/post/relentless-de-risking

 

Christopher Moir
Maker of random charts that seem important 2 years later

Gold update - The 17th December 2020

Tried the video thing again. Let me know if people find this easier to follow than my writing. Also are the charts OK should I spread them across more slides and make them bigger?

Just as I had to manage the short trade going against me now I have to decide is the cash better reallocated from my hedge back in the main trade?

Play the game you see not the game you want.

@Muhammed Banday I hope this helps, or at the very least does not hinder :)