Browsing All Posts published on »August, 2012«

Trailing Stop Oil: A Low Risk Bet on Iran / Israel

August 22, 2012 by

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The price of oil has been rising lately.  This is at least partly due to the prospect of Israel attacking Iran (something I’ve written about separately). Here is a simple low risk trade that could pay off if Israel attacks Iran. This strategy relies on a “trailing stop order.” Before I get into the details […]

August 20, 2012 by

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Originally posted on the augmented trader:
How to invest if Israel or the US strikes Iran In my last article I wrote about the possibility of Israel or the US striking Iran.  In this article I will discuss the implications for your portfolio. The initial market effects of an Israeli / Iranian war will be…

The High Frequency Trading Arms Race is a Problem But Taxing isn’t the Solution

August 11, 2012 by

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Discrete time markets are better than taxing.

The Mysterious Power of Portfolio Rebalancing

August 10, 2012 by

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Rebalancing lets you scrape wealth from randomness.

Information Theory, Sport, Betting and the Stock Market

August 5, 2012 by

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It’s interesting how Information Theory, Las Vegas and Wall Street have been intertwined over the years.

Who Reads This Blog Anyways?

August 4, 2012 by

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Thank you very much for reading my blog.  If you are interested, here are some statistics regarding recent visitors. WordPress offers some handy tools for compiling these…

Software Bugs: What Wall Street can Learn from Mars

August 3, 2012 by

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In the last few months we’ve seen two spectacular software failures on Wall Street. Most recently, on Weds August 1, Knight Capital’s trading software fired off trades in one hour that should have taken place over days.  The flurry of trades caused erratic pricing for 150 US stocks.  Knight is said to have lost $440M […]