In the 1980s, most quantitative models assumed prices followed a bell curve. Vince disagreed violently. He noted that futures and options markets have —extreme events (Black Monday, the Crude oil crash) happen far more often than the Gaussian curve predicts.
You have a profitable edge and want to maximize its long-term growth without going bankrupt.
He pointed out three fatal mistakes:
For most aggressive futures or stock systems, Optimal ( f ) often lands between 0.15 and 0.30 (15% to 30% of your account on a single trade). To a traditional trader, this looks like suicide. To Vince, risking less than ( f ) is leaving money on the table; risking more than ( f ) is mathematical suicide.
It’s not because we have access to some exclusive deal.
Just like a car manufacturer builds a car and relies on dealers to sell it, software creators develop products and work with retail partners to distribute them.
Major retailers like Best Buy aren’t focused on offering the lowest prices. With many stores, employees, and large overheads, their pricing reflects their operating costs. In the 1980s, most quantitative models assumed prices
To get big-box stores to carry certain software products, developers often provide wholesale discounts of 34% to 40%.
It’s similar to when Taylor releases a new album—every extra sale takes zero effort.
Now back to Best Buy.
When a developer offers favorable pricing to one retailer, they’re often required by law to extend the same terms to all authorized resellers.
Including Software Keep.
Close
We Had a Choice
One option was to do what Best Buy does: keep around for ourselves and sell it to you at retail.
But this is silly because we don't have the overheads that Best Buy has. That means we can pass some of those savings to you while maintaining a healthy, equitable business.
So that's what we did. It's why you're seeing a
discount today.
Trading Methods For The Futures Options And Stock Markets Author Ralph Vince Nov 1990 - Portfolio Management Formulas Mathematical
In the 1980s, most quantitative models assumed prices followed a bell curve. Vince disagreed violently. He noted that futures and options markets have —extreme events (Black Monday, the Crude oil crash) happen far more often than the Gaussian curve predicts.
You have a profitable edge and want to maximize its long-term growth without going bankrupt.
He pointed out three fatal mistakes:
For most aggressive futures or stock systems, Optimal ( f ) often lands between 0.15 and 0.30 (15% to 30% of your account on a single trade). To a traditional trader, this looks like suicide. To Vince, risking less than ( f ) is leaving money on the table; risking more than ( f ) is mathematical suicide.
The answer lies in .
UP TO 50% OFF Buy Windows 11 Home & Get Office 2021 Home & Student at 50% Off Use CODE: B50