Heh
This is a classic trap for people who know a decent amount of math, get swayed by a sexy-sounding sentence, and fail to go back and critical examine it.
I think it was maybe the most accurate predictor of whether someone at Jane Street was/would become a good trader.
Conversation
Like the best trader is someone who gets everything right.
A pretty good trader is someone who gets half of things right and changes their mind a lot.
A bad trader is one who knows nothing.
But none of those are the worst trader.
4
2
11
Yes, as it turns out, there is!
1
1
Ha, fair, but 8% annualized return over 24 years is great but not amazing
2
1
yeah I was worried someone was going to call me out on it :P
(I didn't actually look up the returns but Baseball was a lot less monetized then than it is now)
1
1
The correct response to this was “compounded annual return doesn’t tell us anything, we need to see the arithmetic mean of annual returns!”
1
2
