150: Aaron Brown, Pt. 2 – A Lesson in Risk Taking—with the Former Risk Manager of a $200B Fund
Chat With Traders
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The Value It Risk Is the Diving Line
The value it risk is the dividing line. It says, ok, losses up to this point were ging to consider are happend from normal events. But a lot of them are going to be different events of completely different character or we just can't predict em. And you make sure you have contingency plans for those. The stuff you learn to make your barmodel work turns out to be exactly the stuff that, you know, 18 months, two years later, everybody's worrying about. I remember what high frequency trading suddenly jumped up and everybody was getting savagery by their returns. You're usually not blindsighted by it in advance but at least you've seen it in
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