Cautionary Tales of Poor Risk Management 5 – The Downfall of Amaranth Advisors: A Tale of Overexposure

Amaranth Advisors emerged on the financial scene in 2000, an ambitious venture led by seasoned investment manager Nicholas Maounis. Operating from Greenwich, Connecticut, Amaranth quickly rose in prominence thanks to its audacious and dynamic…
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Cautionary Tales of Poor Risk Management 4 – The 2015 Swiss Franc Shock

The Swiss franc, traditionally viewed as a “safe-haven” currency due to its stability and the strength of the Swiss economy, has long played a pivotal role in the global currency markets. Leading up to 2015, the Swiss National Bank (SNB) established a peg with the euro, fixing…
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Cautionary Tales of Poor Risk Management 3: Société Générale

Before we delve into the saga of Jérôme Kerviel, it’s important to understand the institution he was part of – Société Générale. Founded in 1864, Société Générale is one of the oldest banks in France and boasts a storied history.
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Cautionary Tales of Poor Risk Management – No.2 The Demise of Bearings Bank

Founded in 1762, Barings Bank was not just the oldest merchant bank in London but a beacon of prestige in the international financial sector. Its illustrious history and influential role in shaping global finance resonated across centuries and continents.
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Cautionary Tales of Poor Risk Management – No.1 The Collapse of LTCM

Long-Term Capital Management (LTCM) was founded in 1994 by John W. Meriwether, the former vice-chairman, and head of bond trading at Salomon Brothers. The hedge fund aimed to take advantage of pricing discrepancies in the bond market using highly sophisticated mathematical models.
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Data Mining Shapes the New Age of Trading

Data mining, a process that uncovers meaningful patterns and correlations within large databases, has become an indispensable tool in the trading arena. It holds numerous advantages over traditional manual trading, revolutionizing the way traders operate.
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Beyond Guesswork – Examining the Impact of Inductive Reasoning

Traders and investors often rely on historical patterns and trends to guide their decision-making process in their pursuit of financial success. They hope to predict future market outcomes and capitalise on opportunities by analysing past market behaviour.
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Survivorship Bias – No One Remembers the Losers

It is easy to be swayed by stories of those who appear to have mastered the art of trading, generating impressive returns and thriving in the face of adversity, when it comes to understanding success in the financial markets.
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Are you skilled at trading, or just lucky?

Cognitive biases such as confirmation bias and availability bias can have a significant impact on trading decision-making. These biases can cloud our judgement and distort our perception of reality, causing us to make poor decisions.
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bMAMS: Managed Account Service: Mastering the Art of Risk Management in Today’s Risky Markets

Risk management is one of the most critical elements of successful trading system development, yet it is often overlooked or misunderstood. At its core, risk management is the art of balancing risk and reward, protecting funds from market volatility while maximizing profits.
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SVB Collapse Sparks Investor Anxiety: Protect Your Investments with bMAMS

WARNING: The recent demise of Silicon Valley Bank, a dominant force in the technology financing sphere, has sent shockwaves throughout the investment community, triggering a sense of apprehension regarding the potential for market instability and losses. The bank’s abrupt downfall has laid bare the vulnerability of the banking sector.
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bMAMS: How Data and Math Make Investing Safer and More Successful

Unleashing the Power of Algorithmic Trading: How Data and Math Make Investing Safer and More Successful. In recent years, algorithmic trading has emerged as a dominant force in financial markets, attracting interest from investors and traders alike. One of the key reasons for its popularity is the safety and reduced risk it offers compared to manual human trading.
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bMAMS: Advantages of letting machines do the work

In the realm of financial markets, an undeniable trend has emerged – an inexorable shift towards the use of data mining for trading strategies. This is no mere fad, but a bona fide revolution in the way trading is done.
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bMAMS: Using maths to make your funds safer – changing the charts

The future will reflect the past- but it won’t be the same as the past. By manipulating and changing the actual bar chart data of an instrument we can test how a system will go on a similar, but different version of history- an effort to make the past simulate the future.
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bMAMS: Using maths to make your funds safer – skipping & adding trades

This week we look at another Monte Carlo Analysis statistical tool- skipping and adding trades. Like last week’s trade re-ordering it is designed to stress test a system and give a more complete idea of the risk profile it is carrying.
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