Jane Street just ate a $15B L in July—their first red month since 2016—after AI hedge fund bets went sideways.
But here's the kicker: they're still up $40B+ in trading rev YTD.
Even the sharpest prop shops in trad-fi catch knives sometimes. This is why risk management > conviction.
If Jane Street can blow $15B and still print, imagine what happens when retail apes YOLO into leverage with zero hedges.
Position sizing isn't boring—it's survival.
But here's the kicker: they're still up $40B+ in trading rev YTD.
Even the sharpest prop shops in trad-fi catch knives sometimes. This is why risk management > conviction.
If Jane Street can blow $15B and still print, imagine what happens when retail apes YOLO into leverage with zero hedges.
Position sizing isn't boring—it's survival.