13. Position Sizing for active traders (Part 3)
13.1 – Choose your path We addressed a very crucial concept in the previous chapter. We looked at how one can determine equity based on...
12. Position Sizing for active traders (Part 2)
12.1 –Defining Equity Capital The last chapter we laid down few key thoughts on position sizing and with that, I guess it is amply clear...
11. Position Sizing for active trader
11.1 – Poker face Last month I got an opportunity to play poker with a few good friends. I was playing poker after a gap...
10. Value at Risk
10.1 – Black Monday Let’s start this chapter with a flashback. For many of us, when we think of the 70’s, we can mostly relate...
9. Portfolio Optimization (Part 2)
9.1 – Working with the weights In the previous chapter we introduced the concept of portfolio optimization using excel’s solver tool. We will build on...
8. Portfolio Optimization (Part 1)
8.1 – A tale of 2 stocks We have spent a great deal of time and efforts towards understanding risk associated with a portfolio. Our...
7. Expected Returns
7.1 – Expected returns The next two chapter will be very insightful, especially for people who have never been familiar with portfolio techniques. We will...
6. Equity Curve
6.1 – Overview This is off topic – but a little digression hurts no one, I guess. Of all the chapters I have written in...
5. Risk (Part 4) – Correlation Matrix & Portfolio Variance
5.1 – Correlation Matrix In the previous chapter, we successfully calculated the variance-covariance matrix. As we discussed, these numbers are too small for us to...
4. Risk (Part 3) – Variance & Covariance Matrix
4.1 – A quick recap Let us begin this chapter with a quick recap of our discussion so far. We started this module with a...