Malcolm Gladwell outlined the Black Swan strategy Taleb used at Empirica in this New Yorker article from way back in 2002: http://www.gladwell.com/2002/2002_04

Malcolm Gladwell outlined the Black Swan strategy Taleb used at Empirica in this New Yorker article from way back in 2002: http://www.gladwell.com/2002/2002_04_29_a_blowingup.htm http://www.gladwell.com/2002/2002_04_29_a_blowingup.htm Here's the part that resonated with me: "We cannot blow up, we can only bleed to death," Taleb says, and bleeding to death, absorbing the pain of steady losses, is precisely what human beings are hardwired to avoid. "Say you've got a guy who is long on Russian bonds," Savery says. "He's making money every day. One day, lightning strikes and he loses five times what he made. Still, on three hundred and sixty-four out of three hundred and sixty-five days he was very happily making money. It's much harder to be the other guy, the guy losing money three hundred and sixty-four days out of three hundred and sixty-five, because you start questioning yourself. Am I ever going to make it back? Am I really right? What if it takes ten years? Will I even be sane ten years from now?" What the normal trader gets from his daily winnings is feedback, the pleasing illusion of progress. [Hmmm. Can't get italics to work on the quotation.]