Constraining Effort Not Bandwidth

kryders-law

1. Introduction Imagine trying to fill up a $5$ gallon bucket using a hand-powered water pump. You might end up with a half-full bucket after $1$ hour of work for either of $2$ reasons. First, the spigot might be too narrow. i.e., even though you … [Continue reading]

Scaling Up “Iffy” Decisions

hodges-estimator-maximum-risk

1. Introduction Imagine you are an algorithmic trader, and you have to set up a trading platform. How many signals should you try to process? How many assets should you trade? If you are like most people, your answer will be something like: "As … [Continue reading]