Why Daniel Gets the Bonus and John Gets Fired: Simpson’s Paradox on a Trading Desk

Simpson’s paradox in trading illustrated by a tense trading desk evaluating employee performance metrics.
Simpson's Paradox in Action

A deceptively simple win‑rate table leads a trading desk to fire its crisis specialist and reward the safe player. Simpson’s paradox shows how aggregated performance can lie—and why serious risk management must always ask, “conditioned on what?”

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