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.
**
From the Publisher
Permits traders in the futures, options and stock markets to create profitable trading formulas based on the rules of probability and modern portfolio theory. Shows how to develop and utilize key formulas which minimize losses, maximize profits and avoid excessive risk. Reintroduces the idea of ``optimal-f'' and its use in weighing and assigning values to the components of a trader's portfolio. Includes a computer program for immediate hands-on usage of techniques described.
From the Inside Flap
Until now, money management practices have been driven by a loosecollection of highly subjective rules of thumb. By failing toaccurately understand the outcomes of their potential actions, manytraders and serious investors have been operating blind. TheMathematics of Money Management injects a new degree of precisioninto your trading strategies. Based on the rules of probability andmodern portfolio theory, it shows you how to create and use thesemoney management techniques in the futures, options, and stockmarkets. And you don’t need to be a PhD to exploit thesestrategies. Every equation and formula is easy to understand, andpractical examples are provided for immediate hands-on use of thetrading techniques discussed. By wedding the precepts and practicesof modern portfolio theory to the concept of optimal f, TheMathematics of Money Management shows how to gauge the payoffs andconsequences of every potential trading action, before you take it.Armed with this information, you’ll obtain the greatestpotential investment growth for your specified level of risk, nomatter what your chosen market. You’ll use these time-testedstrategies to:
Evaluate the risks and rewards of any potential tradingdecision
Accurately weigh and assign values to the components of anyportfolio
Determine exactly how many contracts to trade for a specificmarket and/or system
Maximize profits under reinvestment trading
Prognosticate future system performance
Now you can bid good-bye to unreliable money management assumptionsand faulty decision making. Here’s the money management toolfor making mathematically correct trading decisions.
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.
**
From the Publisher
Permits traders in the futures, options and stock markets to create profitable trading formulas based on the rules of probability and modern portfolio theory. Shows how to develop and utilize key formulas which minimize losses, maximize profits and avoid excessive risk. Reintroduces the idea of ``optimal-f'' and its use in weighing and assigning values to the components of a trader's portfolio. Includes a computer program for immediate hands-on usage of techniques described.
From the Inside Flap
Until now, money management practices have been driven by a loosecollection of highly subjective rules of thumb. By failing toaccurately understand the outcomes of their potential actions, manytraders and serious investors have been operating blind. TheMathematics of Money Management injects a new degree of precisioninto your trading strategies. Based on the rules of probability andmodern portfolio theory, it shows you how to create and use thesemoney management techniques in the futures, options, and stockmarkets. And you don’t need to be a PhD to exploit thesestrategies. Every equation and formula is easy to understand, andpractical examples are provided for immediate hands-on use of thetrading techniques discussed. By wedding the precepts and practicesof modern portfolio theory to the concept of optimal f, TheMathematics of Money Management shows how to gauge the payoffs andconsequences of every potential trading action, before you take it.Armed with this information, you’ll obtain the greatestpotential investment growth for your specified level of risk, nomatter what your chosen market. You’ll use these time-testedstrategies to:
Now you can bid good-bye to unreliable money management assumptionsand faulty decision making. Here’s the money management toolfor making mathematically correct trading decisions.