To add further insight on to this thread, if you were to look at the normal distribution profile of hedge funds/IBs revenues, they follow a normal distribution pattern that is skewed to the right
The one attached is that of Goldman Sachs (heavily skewed to the right), so in a nutshell, you want your PnL to reflect this revenue profile which can be achieved by sticking to the saying of 'letting your winners run and cutting your losses'
The one attached is that of Goldman Sachs (heavily skewed to the right), so in a nutshell, you want your PnL to reflect this revenue profile which can be achieved by sticking to the saying of 'letting your winners run and cutting your losses'
To Pipccess and Beyond