Ep. 620: 2018 Will Be Great with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Role of Mirror Neurons in Risk
I think that raises another thing that I know you've worked with is the socialization of risk. When we see somebody else do something we have an unconscious connection to that not everybody and not in every situation but it is our biological heritage. In a trading room that a guy has a successful system other people will begin to trade closer to that system than they would if he didn't. It's really hard for us not to stay with the herd which is the basis of the herd idea that the herd will survive in the socialized of risk. We are unconsciously and I mean unconsciously outside of awareness what happened there was that the banks were all trading the same algorithms.
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