Taleb's barbell strategy

Discussion in 'Risk Management' started by Daal, Jan 17, 2017.

  1. Maverick74

    Maverick74

    No, we are in agreement there. I have always asserted that trading in general is very challenging. Even simply investing is challenging. Getting involved in things like optimizing asymmetric payoffs is something that should not be done by mom and pop types (most of ET). I do lots of these trades and have no desire to discuss them so feel free to discount that how you wish. I do agree that most people should just buy and hold an ETF like SPY and call it a life. They would far outperform most of the junk I see on ET that gets espoused as a trading strategy.
     
    #51     Jan 21, 2017
    eusdaiki likes this.
  2. Taleb would have been right if central banks had not taken over. He simply extrapolated another correction after two large correction in a period of 8 years, in 2000 and 2008. Many authors first extrapolate and then they try to justify wishful thinking with convoluted arguments.

    Correct me if I am wrong but Taleb had a fund based on his barbell strategy he closed down? How many other bears were driven to full stop and ruin during the last 8 years? If central banks had not stepped in, maybe Taleb would have been the richest trader. But it doesn't work like this, almost never. Maybe the barbell strategy time is now getting closer again.One of the best authors I follow had this excellent article 'Negative Gravity'. Obviously long-term expectation is negative from barbell. But it can peak too high before going negative. You do not have to continue after the peak. Just take the money and run. This is the idea.
     
    #52     Jan 22, 2017
  3. Baloney. "assuming you are protected from inflation," is never a valid assumption. Therefore, the rest of it is nonsense. "If pigs could fly, then..." Well, pigs can't fly, so whatever follows is worthless.
     
    #53     Jan 22, 2017
    dealmaker likes this.
  4. Maverick74

    Maverick74

    And how do you protect yourself from inflation Steve?
     
    #54     Jan 22, 2017
  5. Daal

    Daal

    Does this man sound like he was long T-Bills with 90% of his networth?


    He talks about how he left Lebanon and when the currency went from 2 to the dollar to 1500 or some such. In US, because of Bernanke, he was feeling there was that risk again.
    Whatever he was doing pre-crisis is not likely to be what he was doing after the crisis
     
    #55     Jan 23, 2017
  6. Maverick74

    Maverick74

    You do know he is retired right? He doesn't actually trade anymore. His partner, Mark Spitznagel, manages his money now.
     
    #56     Jan 23, 2017
    dealmaker likes this.
  7. Daal

    Daal

    And you know all his money is with Spitznagel how? I doubt it is all with him and I doubt it is/was in T-bills either
     
    #57     Jan 23, 2017
  8. dealmaker

    dealmaker

    Last edited: Jan 23, 2017
    #58     Jan 23, 2017
  9. ironchef

    ironchef

    I think his black swan refers to either a crush or an asymmetric up side.
     
    #59     Jan 23, 2017
  10. Maverick74

    Maverick74

    Who knows. I don't care. Why would I care? I know he is not trading because he said as much. Why worry about something you have no control of?
     
    #60     Jan 23, 2017
    dealmaker likes this.