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I didn't say they understood the math they were using and lost it, I said they used math and lost it. Obviously if you always understand what is going on, you'l
by w1ntermute 11y ago
I didn't say they understood the math they were using and lost it, I said they used math and lost it. Obviously if you always understand what is going on, you'll never find yourself up shit creek without a paddle.
- beagle3 11y agoAnd I ask again, since you linked to this book - did you read it? Or was it just "these guys failed, and they started out by using math, so ..." statement? They did not use math at the time they lost money. They were were essentially gambling (doing "risk arbitrage", which is all risk and no arbitrage).