I’m going to cover two important topics today which both relate to realized volatility (RV) and in particular how to trade your way around it. If you’ve been a trader for a while then you probably have noticed that volatility profiles differ substantially on the short term when compared with the long term. In essence volatility has a tendency to decrease toward the long term. Nevertheless many traders treat those charts the same when designing their systems, e.g. how and where they enter, where they place their stop loss, and how they handle campaign management.
I really had to drag my butt in front of my monitor this morning. Didn’t feel like trading and I for sure didn’t feel like I had it in me to do a post. But as the saying goes: No rest for the wicked. For I was quickly reminded of a sentiment I felt many times after convincing myself to brave lousy weather and hit the gym. For one I was glad that I went and most importantly I probably would have missed a kick ass session.
Now dreaming about the future can be a lot of fun (of course your mileage may vary) but until we actually get there there’s quite a bit of work left to be done. After all those fancy hover cars and food replicators won’t pay for themselves. Or perhaps – will they?
Having paid tribute to it right here on several occasions over the past years  I was once again reminded of late Andy Grove’s favorite motto earlier this morning when I saw the flash crash in the silver futures. Apparently rumor has it that someone (Mexico.. cough.. cough) dumped around $200 Million notional of Silver in just a few minutes. Which presented us all with a great entry opportunity – twice – if you happen to be a high frequency AI directly hooked into the IEX pipe reading this. Incidentally if you are then let me be first to announce that Evil Speculator welcomes our glorious new robotic overlords.