Product Description
Every futures, options, and stock markets trader operates under a set of highly suspect rules and assumptions. Are you risking your career on yours? Exceptionally clear and easy to use, The Mathematics of Money Management substitutes precise mathematical modeling for the subjective decision-making processes many traders and serious investors depend on. Step-by-step, it unveils powerful strategies for creating and using key money management formulas—based on the rules of probability and modern portfolio theory—that maximizes the potential gains for the level of risk you are assuming. With them, you’ll determine the payoffs and consequences of any potential trading decision and obtain the highest potential growth for your specified level of risk. You’ll quickly decide: What markets to trade in and at what quantities When to add or subtract funds from an account How to reinvest trading profits for maximum yield The Mathematics of Money Management provides the missing element in modern portfolio theory that weds optimal f to the optimal portfolio.
- Details
The Mathematics of Money Management: Risk Analysis Techniques for Traders
Tags: Traders, risk, Techniques![[Google]]( http://www.30kgroup.com/wp-content/plugins/easy-adsenser/google-light.gif)
The book is well written, reflecting the level of education. The author is not factice.Cependant, the community is better served to realize that there is a gap between modern portfolio theory, methods of quantitative ad infitum followers, practices and followers of Portfolio Theory, which followers are more or less of Edwards & Maggee / Business Schools Wyckoff pensée.Ma recommendation is to identify which schools of thought to which it belongs and only the rest charlatan of other books that accompany it. Rating: 3 / 5
The book provides a good description and detail of money management, portfolio problems, and more. Recommended! Rating: 5 / 5
This book should have been the best I have red in the financial management (position sizing). The author illustrates mathematically how we can maximize the growth of our heritage through the use of optimally * f. I think most people with basic training in mathematics (and statistics) may include the necessary explanation determines optimal f * and how to calculate. The calculation is behind is not too hard (actually, all the sums in equation 1. 13, page 31). For the people of the difficulty of applying this method backtested results, I recommend Thomas Stridsman his book (How to build winning trading systems). It shows how to do this in MS Excel.Je am currently using the optimum f * as a method for determining the maximum heat for my portfolio of trading systems, but not immediately, applying to the position of the size of my orders comes. You can also use the f * commercial.Certainement score their recommended system for people with an interest in money management for business systems. Rating: 4 / 5
Vince is the best work available to the subject of money management in the futures market. If you’ve ever wondered how many futures contracts, you need to buy to improve the growth of all, what the maximum loss and limit the damage, then this book is a must for negotiation of the library. The book is mathematically oriented, but if you invest the time to understand as the manager of the fund will increase considerably. A must for any serious professional! Rating: 5 / 5
Set aside pre-conceived notions of your money management is the risk / reward. While it is certainly a good idea to keep R & R in mind, this is not well defined mathematically. All Ralph Vince presented in this book is applicable to trading on an optimum level (for maximum profits). The book begins to examine the concept presented in his earlier book on optimal f. empiral This serves as an introduction to the chapter to come, when the idea of the parameters of probability density f is detailed, which allows any trader (even in the absence of data empiral) to determine the optimum amount to trade. Vincent is a clear distinction between the definition of optimal portfolio weight classical theory, with the idea in mind that the optimal number and optimal weights are different for leveraged accounts. As an extension of the optimal parameters f, we have introduced the best “optimal”, which combines theory with the theory of modern portfolio optimal f (theory of Markowitz EV) for the construction of an optimal portfolio geomtrically unrestricted. Vince discusses the Black-Scholes options Mode, and the Black futures option pricing model, among other things, include in its terms of this ideal “optimal” portefeuille.Ce certainly not a book that can be read in a few days, unlike most books that I found on trade. It is the best way for the reader if he / she was to summarize the ideas presented Vince with the result of what he did in creating their own representations statistics (Excel, Minitab, … If this is not a problem because some ideas are very difficult to formulate a statistical software). Finally, I should say – I’m quite confident that Vince has made a mistake with its partial derivatives in the introductory chapter on the theory EV (when using the method of Lagrange). Rating: 5 / 5