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Ep. 1165: Big Events with Michael Covel on Trend Following Radio

Michael Covel's Trend Following

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The Black Souls Option Pricing Model Was Not for the Real World

The Black Souls option pricing formula did not factor in the randomness of human behavior. LTCM had the beautiful formulas, but they were not for the real world. The ultimate error is to put a ton of money with geniuses who never lose money. When all hell breaks loose, those guys lose everything.

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