Everand Logo

Welcome to Everand!

  • Discover millions of ebooks, audiobooks, and so much more with a free trial

    Only $11.99/month after trial. Cancel anytime.

    The Leverage Space Trading Model: Reconciling Portfolio Management Strategies and Economic Theory
    The Leverage Space Trading Model: Reconciling Portfolio Management Strategies and Economic Theory
    The Leverage Space Trading Model: Reconciling Portfolio Management Strategies and Economic Theory
    Ebook304 pages3 hours

    The Leverage Space Trading Model: Reconciling Portfolio Management Strategies and Economic Theory

    By Ralph Vince

    ()

    Read preview

    About this ebook

    The cornerstone of money management and portfolio optimization techniques has remained the same throughout history: maximize gains and minimize risk. Yet, asserts Ralph Vince, the widely accepted approaches of combining assets into a portfolio and determining their relative quantities are wrongand will cost you. They illuminate nothing, he says, aside from providing the illusion of safety through diversification. Although numerous Nobel Prizes have been awarded based on some of those widely accepted principles, their popular acceptance does not constitute real-world validation. What has been needed is a viable alternative to directly address these real-world dictates.

    In The Leverage Space Trading Model, Vince offers a groundbreaking contribution to the literature that builds on a lifetime of expert analysis to deliver not only a superior new portfolio model, but takes the entire discipline of portfolio management to a new level.

    In this book, Vincewho has made many important intellectual contributions to the field for over two decadesdeparts radically from informed orthodoxy to present an entirely new approach to portfolio management. At its core, The Leverage Space Trading Model basically tells how resources should be combined to maximize safety and profitability given the dictates of the real world. But, as the author points out, given the complex and seemingly pathological character of human desires, we are presented with a fascinating puzzle. Research has found that human beings do not primarily want to maximize gainsour psychological makeup is such that we instead tend to possess seemingly more complex desires. If the models don't work, if we are ultimately unable to satisfy our more complex desires, what's the alternative? As Vince shows, the answer is to utilize the Leverage Space Model as a "framework" to achieve the specific ends a trader or portfolio manager seeks.

    The author's new allocation paradigm avoids the troubles that come with mean variance modelswhich most models areand quantifies drawdowns to achieve a growth-optimal portfolio within a given drawdown constraint, in a manner that satisfies these seemingly pathological human desires. And for those who don't wish to get involved with the mathematics, Vince has presented the text in a manner of two congruent, simultaneous channels, with math and without.

    Most simply put, this book will change how you think about money management and portfolio allocations.

    LanguageEnglish
    PublisherWiley
    Release dateMay 13, 2009
    ISBN9780470496022
    The Leverage Space Trading Model: Reconciling Portfolio Management Strategies and Economic Theory

    Related to The Leverage Space Trading Model

    Titles in the series (100)

    View More
    View More

    Related ebooks

    Investments & Securities For You

    View More
    View More

    Related podcast episodes

    Related articles

    • Article

      What I Learned from Losing $200 Million: The 2008 financial crisis taught me about the illusion of control, and how to give it up.

      Dec 24, 2015

      I’d lost almost $200 million in October. November wasn’t looking any better. It was 2008, after the Lehman Brothers bankruptcy. Markets were in turmoil. Banks were failing left and right. I worked at a major investment bank, and while I didn’t think

      15 min read

    • Article

      Rogue Trader

      Jun 5, 2020

      Rogue Trader
      10 min read

    • Article

      Are You Gambling or Investing? Here’s How to Tell

      Mar 2, 2021

      Investing in the stock market over many decades offers most people an incredible opportunity to build wealth. Does that surprise you? If so, you’re not alone. Over the course of my career as a financial planner, I’ve found that many people look at th

      4 min read

    • Article

      Discipline Goes A Long Way

      Mar 31, 2022

      The life of a trader is not what most of us might imagine it to be – that is, glamorous, exciting and paved with gold. More likely it is solitary, private, a bit boring and, when done right, provides a living. We could all be traders. We could all be

      5 min read

    • Article

      4 Closed-End Funds with Sky-High Yields

      Feb 1, 2018

      With robust yields and share prices trading at a discount to the value of their investment portfolios, these four closed-end funds are worth exploring now. For more about how closed-end funds work (and can add juicy payouts to your portfolio), check

      2 min read

    • Article

      The Magic of Moving Averages

      Jan 31, 2019

      When price charts begin to look like jagged mountain ranges, it can be hard to map out which way stocks are headed. Enter the simple moving average. The tool is a staple of technical analysis--the practice of determining the direction of stock prices

      2 min read

    • Article

      How To Set Yourself Free

      Sep 2, 2020

      One of my clients retired at 50 to become a full-time trader, hoping he could shrug off the rat race and the typical work-sleep-work life. Fifteen years later he is still “retired” and still trading full time. Now he calls it what it turned out to be

      6 min read

    • Article

      Book Of The Week

      Mar 19, 2021

      Book Of The Week
      2 min read

    • Article

      A Conversation with a Short Seller

      Aug 18, 2020

      A short seller leads a lonely life, it seems. Short sellers profit from stocks that decline in value. So, when they win, it means that most of their friends and family are likely losing. And when they lose? Well … they don't generally get a lot of sy

      4 min read

    • Article

      Share Madness

      Jun 22, 2020

      Share Madness
      2 min read

    • Article

      Q&A

      Jan 1, 2024

      Think about a start-up, but at scale. An archetypal tech start-up is an egalitarian band of people on a mission. It’s not terribly hierarchical — people do whatever needs to be done, but they’re all pointed in the same direction. They keep iterating

      5 min read

    • Article

      What I Learned from Losing $200 Million

      Jul 8, 2020

      I’d lost almost $200 million in October. November wasn’t looking any better. It was 2008, after the Lehman Brothers bankruptcy. Markets were in turmoil. Banks were failing left and right. I worked at a major investment bank, and while I didn’t think

      15 min read

    • Article

      Depend on Market Efficiency - Not Pundits - to Help Protect Your Portfolio

      Aug 31, 2018

      Hardly a day goes by without some self-proclaimed expert making lofty, and sometimes outrageous, predictions in the media about where the markets are heading and what you should do to help protect your portfolio. You may have noticed their forecasts

      3 min read

    • Article

      Best Tips From The Top

      Sep 29, 2022

      Best Tips From The Top
      3 min read

    • Article

      Thinking About Day Trading? Read This First

      Sep 22, 2020

      In the midst of the pandemic, you may have noticed a rather unusual trend: More and more people are jumping into the stock market. Despite, or perhaps even because of, extreme volatility in the market and endless speculation about what could happen n

      3 min read

    • Article

      Venture Beyond Our Shores

      Nov 2, 2022

      Venture Beyond Our Shores
      2 min read

    • Article

      Password To Performance

      Jun 3, 2020

      There are a couple of lessons to be learned from the recent correction. The first is that most fund managers didn’t do much. And that’s a fact of life for anyone in big super funds. It’s not a criticism; it is simply reality. Big funds are too big to

      4 min read

    • Article

      Why Fear Is As Good As Greed

      Jul 28, 2022

      Why Fear Is As Good As Greed
      4 min read

    • Article

      Robo Advising 101

      May 1, 2018

      What options are currently available to someone who wants to invest some of their hard-earned money? Today’s investors have a number of choices. First, they can open up a discretionary account, where they give their money to a fund manager who makes

      9 min read

    Related categories

    Reviews for The Leverage Space Trading Model

    0 ratings

    0 ratings0 reviews

    What did you think?

    Tap to rate

    Review must be at least 10 words

      Book preview

      The Leverage Space Trading Model - Ralph Vince

      Idbook_preview_excerpt.html[]r+-=h]}zY.YMٺ[]yg@ޙ=YzʏK^~I0ݕJTUh4O<>|<}6/eֶr|lW0v}5wf\|ѴvpY X]5֦ fz| >6W\v6<<=}flW 56֙ݸj|e:.7x| '!WQX0YN_@ Waυz8.{˟[_=F׸Jġăo}1}&}W5c/9[]m[aTCoxk'L˄?mӘ8% kt֜Od >:pE(cchLr_췾ښ-yp\gji쮺nqXuov֍=t#YٯoĈ K34H+ZhI,CsjP"~{u=kiގ۰r졳4m_cǸZ0nvaӅ♬i Ъvq83^_vc4슗q&=/{NSݮȡPM-3Ս/gQ" P=Hd[Ƚ.|0xl_d2B k_g;1Lk7p6ٚPE:qfgnS8#Π&OeDPg7LNT hl8-f]ShBq[ tAAZm3 W$2w ΀ BCѶN!˹uW(V/{\-OՋr"78ρqKT s7=c>)s9q\y(vcڌ@]OcӕYA6 |q'˙|O )H{*:.CDm~AH͵2\cB|[(zbcXm]P쬈W4qI@~z19Eŭ~5⮀-[QRCGq/[@.vR8L v"Te2D/dU1plq -"I=afVz _^9.l {>EtDZc};66y+s@ i/ +G4s79Ԭlw-ZZt¨v{s|Zc4F;] jbwRC p71Mq[Rr+Tp  N<\-X*iD$6JΧRIX1ewj܆:Oa 1dW[A&k~(P,J J@.U?0TRμQ`{y.&7~; 2qnWW*OKE"k$JQ.YQd2>K Q|l3K/|c~xu޹fu0?bAo#^6%ËףF%9;PhPagQ$C@bw62ofzd~ m#+ Rw{үhOĥxqR \D&HjRhߪy6uC +EcVR4E@t`A% Xے~KaLrI":*99SثДN.TQT%=-Rjc]P$ w杏[lWbbcՃ6@5ZW dX;npmEjIqu:s>txjbrPDg4܍~/ESeY(?rz)I^X;A4}5XEVzҿ2 EZex6͹X yTM%Aq_بzE;>M x/8?U}mm[xgweY4.>O1[q J9y V.L{kۖd}SZSab#/dح zJ"?)O V;h,drl[9N 9@6$PhI7 ;uuoHǴt3e>qSTIr5vBA#Sa}J(zT\:F?¢i~mRda/X8(XHe&6Xei l>)TNAPٹw-NbQp..7z6V)(_kMM/4 l óreڃt'p'c/ԁuّ|?~dש R9{,o3^2>20rF+UeR\,@Lzdʨe%)dsBxRY6C2)dN+9A#me7'uIά}$Jj"2vXg/SO1R/( q\fNB08qϘzHdXFVD˲;<tf8883rV^^mlHKN'ԝP xu ~3`VS!lVzxZE$2|XN{ 23Q(W|^glqlKG}^ -;{26MrI̼rh yj`]zuo,Zi SRjZGhl7:,rBЁ1mɦ'*60.=0M;YX">!ķFj|J 1G% hma|-znNO&ѩ{aOk{qmG㤧SHESFGYƔxTy˟\Ti ԑ^hSfHSxe\ئ$f~)"] %<.-\6kmWyKY ȮpW71m|"V*#g \ܐ+5OQh4+Zz!߿ƙWIY={n,٧K#'5 fEr%f<L~"?/OTaªvGftk.%l6%DݟHE+'UrI'K(0IrQThF̞Zi̓LcS+%*o?(5lH#$ J>NT)Ia ՜|jr ߲Q*Ppqyh'T.V|fܕ^([MSb``ɽu&ƞ wֲ H_L.Q2_ʬ(9eI:qtM~'%v{X̆Jθ'S{Ǧ^O2 N=1zsI'Uܙ.5<Ҟ-aě]q;f8ټ3'w/24mۮdq@8D8OJGcxA[kQdWCS!2`2\ }eÔB`hD}(nR7#)`y`gp/n^&|&);"dgr yO]R=K.pVV/$F&dcgũ$ |m?[<#}hU@)-̩Ip87/鶇 g8lJq9/ 5 ج-ͻqG lCƗ MHIS3|0K W= ,Y %6`U@"rqsA,y4uڬZX@JӞ<]0K-HJS<*/|?;=pAQsBhb(1Йo\/R&JWUղ߄w?g3O$V,rY.%>4{2ZֽN=|jRd@]&nuo."gyMJbsՙE埈E{?xA\wA$4հnoۥt $N@|c^--7uTNMvr̞{ 灗-:㤎4OO>묩Y:IDm@HmrƫƬCCn~#\-Kŝ y,7>/$w?w,ήWB%5;vu*7;%2\ ,i2^L}ty R֊5[y~=2Я4Nii=}8qҦruA:ڃΛai~c'oMr]]i؟|Aq޼~xA/Uj5^ąUI3:\"b|VWĖ`݋]*X֚Pth1v!,4RKTջ\+oTQu3G,S) 7|c~ԋ}3 > zzY62ģ95"s+5o0|bNohK,U< ]|vTc=fO~!#-YFmQJP +R| U!١ sɆmt7L...T&KY$۵ƚvI*UVXoMmNѳR΅csr!cj;U7}g0QQQb8қjE,g;>ő~N2J/)5٭y*l:(˸呤{犐7Sx۸ϴlMsEWoLxBWhU&UgGO՛{BYPfIoj55m)m[~K93RIwaӲi/?ړt. T V֤EةL? xo4=
      Enjoying the preview?
      Page 1 of 1