Foundry
Educational articles for serious traders. Market structure, risk management, and institutional theory.
What Is Beta — Understanding How Sensitive a Stock Is to the Market
What Is Beta — Understanding How Sensitive a Stock Is to the Market Investment Concepts Moving With the Market — or Against It Beta measures…
What Are Hidden Markov Models — Detecting Market States You Can’t See Directly
What Are Hidden Markov Models — Detecting Market States You Can’t See Directly Investment Concepts The Hidden State Problem Imagine you’re watching a stock price…
What Are Market Regimes — the Four Phases Every Market Cycles Through
What Are Market Regimes — the Four Phases Every Market Cycles Through Investment Concepts Markets Don’t Move Randomly Markets cycle through distinct phases, much like…
What Is the Calmar Ratio — Returns Measured Against Your Worst Day
What Is the Calmar Ratio — Returns Measured Against Your Worst Day Investment Concepts What Really Matters: How Much Did You Lose? The Calmar ratio…
What Is the Kelly Criterion — the Maths Behind Position Sizing
What Is the Kelly Criterion — the Maths Behind Position Sizing Investment Concepts How Much Should You Bet? Most investors obsess over what to buy.…
What Is the Sharpe Ratio — Measuring Returns Against Risk
What Is the Sharpe Ratio — Measuring Returns Against Risk Investment Concepts Not All Returns Are Equal Making 20% sounds great. But what if you…
What Is Margin of Safety — Buffett’s Most Important Principle
What Is Margin of Safety — Buffett’s Most Important Principle Investment Concepts The Buffer That Saves You Margin of safety is the gap between what…
What Is Fair Value? How to Calculate a Stock’s Worth
What Is Fair Value — and Can You Actually Calculate It? Investment Concepts The Price vs Value Question Every investor eventually asks the same question:…
What Is Return on Equity — Measuring How Hard Your Capital Works
What Is Return on Equity — Measuring How Hard Your Capital Works Investment Concepts The Efficiency Test Return on Equity (ROE) measures how effectively a…
What Is the P/E Ratio — and Why Every Investor Watches It
What Is the P/E Ratio — and Why Every Investor Watches It Investment Concepts The Price Tag on Earnings The Price-to-Earnings ratio — universally called…