Tail Risk Killers:  How Math, Indeterminacy, and Hubris Distort Markets
Tail risks are rare, high-impact events manifested at the far ends of a probability distribution. Left alone, they occur naturally and the market adjusts accordingly. However, statistical modeling expert Jeff McGinn argues that central banks kill these tail risks by artificially distorting markets, which makes them vulnerable to more catastrophic risk when the contrived market conditions become unsustainable.InTail Risk Killers, McGinn considers the limitations of linear scientific thinking when applied to a complex adaptive system like financial markets. He reveals how strategies that understate the role of indeterminacy are incomplete tools for making accurate market predictions. Using insightful examples and practical formulas, he guides you step-by-step through developing the right trading mindset to accurately manage risk by:Gathering data, history, and techniques outside the prevalent paradigmIdentifying the slow change of evolution and adapting to new conditionsMaking predictions once conditions are constant and stableTail Risk Killersis the authoritative road map for evolving your trading strategy and protecting your portfolio from extreme events that happen more often than you might think.