Lucid thinking. I first heard the entropy from a bean trader working for Continental Grain in the late 70s. He said it was an irreversible force acting on your P n L when you are winning. He was also the first guy I met that charted his P n L by hand during the session and often dispassionately liquidated his entire account. He selected trades carefully but treated his account as a single entity.
Can always rely on you for some amazing stories, JJ. There are a few high stake traders I know who view their PnL in a similar way and have hard stops based on their account in place in case the market turns.
Thanks for shining light on an important concept. Entropy can help us find regularity in the natural disorder of the markets.
https://open.substack.com/pub/cedarshillgroup/p/chg-issue-143-finding-order-in-disorder?r=1qscct&utm_medium=ios
Appreciate you sharing the article. Thanks 🙌
Lucid thinking. I first heard the entropy from a bean trader working for Continental Grain in the late 70s. He said it was an irreversible force acting on your P n L when you are winning. He was also the first guy I met that charted his P n L by hand during the session and often dispassionately liquidated his entire account. He selected trades carefully but treated his account as a single entity.
Can always rely on you for some amazing stories, JJ. There are a few high stake traders I know who view their PnL in a similar way and have hard stops based on their account in place in case the market turns.