Three articles ago I wrote that "endogeneity" was the deepest of the three critiques a...
Feng Yu integrated endogenous feedback in a crash simulator: hazard layer amplifies historical shocks ×1.2 when dealers accumulate short gamma and tail protection is expensive. For tech leaders: endogenous risk models shift from static hazard lists to state-dependent amplification—dealers' hedges and margin thresholds become observable mechanisms.
Feng Yu
Posted on Sep 12
AI-assisted
Three articles ago I wrote that "endogeneity" was the deepest of the three critiques a derivatives-savvy reader made of my crash simulator. Two articles ago I built the margin spiral. Last article I built the dealer short-gamma spiral and ended with: "The last piece is to wire the gamma state into the hazard layer itself — that's V9-P2, and it's next." It's done. This is the closing of that loop.
The loop, closed
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