Inside the Black Box – The Simple Truth About Quantitative Trading : [PDF Download]

Summary:

Here on this page, we have provided option to read “Inside the Black Box – The Simple Truth About Quantitative Trading PDF” and please feel free to download PDF file for offline reading it from download link Given below to Your Computer/Mobile Storage. For more books from Same Author You can visit John Wiley & Sons.

Inside the Black Box – The Simple Truth About Quantitative Trading- Download PDF Book:

“Risk management should not be thought of solely as the avoidance of risk or reduction of loss. It is about the intentional selection and sizing of exposures to improve the quality and consistency of returns. In Chapter 3, we defined alpha as a type of exposure from which a quant trader expects to profit.

But we also noted that, from time to time, there can be downside to accepting this exposure. This is not what we classify as risk per se. By pursuing a specific kind of alpha, we are explicitly saying that we want to be invested in the ups and downs of that exposure because we believe we will profit from it in the long run.

Though it would be great fun to accept only the upside of a given alpha strategy and reject the losses that can be associated with it, sadly, that is not possible. However, there are other exposures that are frequently linked to the pursuit of some kind of alpha.

These other exposures are not expected to make us any money, but they frequently accompany the return-driving exposure. These exposures are risks.”

PDF Preview – Read, Think and Grow

REPORT THIS:
Our intention with this initiative is only to help needy people. If the PDF file download link is not working or this PDF Content is Copyright material and if you want to unpublish it, Please REPORT IT.