Thanks! That’s helpful. I definitely wrote this rather stream of consciousness and I definitely was more amped up about what I was going to say at the start than I was by the time I’d gotten halfway through. EDIT: I’ve changed the title an added a note at the top
I think the section where I say “it doesn’t matter how you think about this” I mean it something in the sense of: “Prices and vols are equivalent in a Black-Scholes world, it doesn’t matter if you think in terms of prices of vols, but thinking in terms of vols is usually much more helpful”.
I also agree that having a handy version of the formula is useful. I basically think of Kelly in the format you do in your comment I highlighted and I think I would never have written this if someone else hadn’t taken that comment butchered it a little but and it became a (somewhat) popular post. (Roughly I started writing a long fairly negative comment on that post, and tried to turn it into something more positive. I see I didn’t quite manage to avoid all the anger issues that entails).
Thanks! That’s helpful. I definitely wrote this rather stream of consciousness and I definitely was more amped up about what I was going to say at the start than I was by the time I’d gotten halfway through. EDIT: I’ve changed the title an added a note at the top
I think the section where I say “it doesn’t matter how you think about this” I mean it something in the sense of: “Prices and vols are equivalent in a Black-Scholes world, it doesn’t matter if you think in terms of prices of vols, but thinking in terms of vols is usually much more helpful”.
I also agree that having a handy version of the formula is useful. I basically think of Kelly in the format you do in your comment I highlighted and I think I would never have written this if someone else hadn’t taken that comment butchered it a little but and it became a (somewhat) popular post. (Roughly I started writing a long fairly negative comment on that post, and tried to turn it into something more positive. I see I didn’t quite manage to avoid all the anger issues that entails).