Different Instruments Have Different Physics
You can’t copy-paste one risk model across assets; each instrument has its own hours, liquidity, gap behavior, and contract rules.
Options
Asset hub
You’re Short Volatility Without Knowing It
If your strategy collects frequent small wins and fears big moves, you are effectively short volatility, whether you trade options or not.
Risk of Ruin Is the Only Metric That Matters
If your plan has meaningful risk of ruin, time will eventually find the sequence that ends you.
You Can Be Right and Still Lose
Correct direction is not profitability if your payoff shape, timing, and costs are wrong.
Volatility Changes Your Size, Not Your Conviction
If volatility doubles and you keep the same position size, you doubled your risk whether you admit it or not.
High Win-rate Strategies Die Quietly
Many high win-rate strategies are just selling tail risk: they look genius until they meet the one loss that matters.
Sequence Risk Beats Your Average
Two strategies with the same average return can have radically different survival because the sequence of returns can kill you.
Costs Are a Strategy
If your system doesn’t beat spreads, slippage, and financing, you don’t have an edge, you have entertainment.