Managed Futures is the one category that consistently benefits from volatility AND has positive expectancy, unlike short-sellers.

No GravatarInsteresting comment from Jason Ruspini.

Jason, the high-end event derivative traders at BetFair (and probably at TradeSports and Betdaq) do benefit from volatility &#8212-they would trade thousands of times on one prediction market, back and forth, taking advantage of small price moves. Any related thought about that, with respect to your comment at Potfolio?

Previous blog posts by Chris F. Masse:

  • “Is Clinton’s Pennsylvania Lead Really 20 Points?”
  • The Most Surprising Piece Of News I’ve Heard Today
  • My first prediction market plugin for WordPress
  • Self-Serving Prediction Market Of The Day — Unlawful Internet Gambling Enforcement Act of 2006
  • Prediction markets tend to be so illiquid, though, that mere activity looks like volatility.