Portfolio Management Software
By Flavia Cymbalista, Ph.D Abstract / Introduction: In its traditional formulation as an explanatory principle, reflexivity means that any object of thought contains in itself the thinking activity that generates it. Applying the concept of reflexivity to the question of financial markets valuation, Soros concludes that economic reality is actively […]
In fixed ratio position sizing the key parameter is the delta. This is the dollar amount of profit per contract to increase the number of contracts by one. A delta of $3,000, for example, means that if you’re currently trading one contract, you need to increase your account equity by […]
By Bennett A McDowell Abstract / Introduction: When you hear of someone making a huge killing in the market on a relatively small trading account, more likely than not is was a fluke: The trader was not using sound money management techniques. The trader probably exposed his trading account to […]
By Peter R Locke, Steven C Mann November 2000 Abstract / Introduction: Recent evidence (e.g. Odean, 1998a) describes investor behavior that is at odds with traditional economic theory. These alternative behaviors, such as those consistent with the disposition effect or overconfidence, form the basis for recent “behavioral” explanations for asset returns […]
This tutorial written and reproduced with permission from Peter Ponzo Recently, a theory of coherent risk measures was proposed by Artzner, Delbaen, Eber and Heath (Thinking Coherently, 1997 and Coherent Measures of Risk, 1999) Huh? Patience. There are a jillion ways to measure “risk”, perhaps the most common being Volatility […]