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Sunday, March 11

11th Mar - Bridgewater & Trading

Some interesting articles on trading and the now "officially" greatest hedge fund of all time - Bridgewater.




TRADING
The Rules: Interloper Adjusts to Investing as an OutsiderInterloper
The ubiquity of online data and opinion has completely reshaped investor requirements. The base facts are completely commoditized and what is now necessary is prioritization and context, someone to advise on which data points matter most at any given time.

How You Will Know That You Are Truly A Traderbclund
It’s my belief that one of the criteria for truly calling yourself a trader is not related to what your job is or even if you make money in the markets, but your ability to always have an answer to the question; “What was your position when…….?”

Everything You Ever Wanted To Know About Visualization, Part 1SMB Training
visualization is a key tool for boosting performance and increasing success

On the inevitability of actively managed ETFsAbnormal Returns
Not long after the introduction of the S&P 500 Trust ($SPY) the industry has pushed into additional asset classes and strategies that presumably justify higher management fees. Actively managed ETFs are therefore the latest in a long line of industry “innovations.”

Genes and investing: Natural stock selectionThe Economist
The authors calculate that genetic factors account for between a quarter and half of the variations in irrational investment behaviour between individuals.

BRIDGEWATER / RAY DALIO
Ray Dalio: Man and machineThe Economist
The economic ideas of the world’s most successful hedge-fund boss

Ray Dalio Eclipses George Soros As Most Successful Fund ManagerHITC
Almost 40 years ago, a young Harvard graduate called Ray Dalio was trading futures at a brokerage called Shearson Hayden Stone. His boss was one Sandy Weill, who would go on to become famous as chairman and chief executive of Citigroup.

A Template for Understanding…  Bridgewater (pdf)
Ray Dalio, founder of Bridgewater Associates, explains how the economic machine works and uses that "template" to explain what is happening in markets now

Risk Parity is About BalanceBridgewater
Bob Prince, Co-Chief Investment Officer of Bridgewater, explains the concept of Balance that underlies the Risk Parity approach.

Engineering Targeted Returns and RisksBridgewater
Ray Dalio, founder of Bridgewater Associates, explains how to structure a portfolio to target a 10% return with 10-12% risk.

An In-Depth Look at DeleveragingsBridgewater
The purpose of this paper is to show the compositions of past deleveragings and, through this process, to convey in-depth, how the deleveraging process works.

Why Countries Succeed and Fail EconomicallyBridgewater
This study looks at how different countries’ shares of the world economy have changed and why these changes have occurred, with a particular emphasis on the period since 1820. As explained in this study, the rises and declines in countries’ shares of the world economy occur as a result of very long-term cycles that are not apparent to observers who look at economic conditions from a close-up perspective.