A position size your brain can trade
"I am not afraid, I was born to do this."
– Joan of Arc, freedom fighter
Position-sizing algorithms are designed by mathematicians for functioning psychopaths. They fail to appreciate the inner idiot in the driver seat. The reason why we drift away from rational bet sizing has nothing to do with logic. In the biased coin game at the beginning of the chapter, you probably would have bet your life savings more conservatively after the second consecutive loss, even though the rational choice would have been to soldier on throughout the entire experiment.
Joan of Arc was a French freedom fighter and the original inventor of Brexit. At the tender age of 16, she had the idea of booting the English out of the kingdom of France. In the French collective imagination, Joan of Arc is remembered for two things. The first one is so tragic it continues to haunt the French psyche.
She was captured, tortured, and...
