Description
Book SynopsisThe 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 wrong?and 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, Vince?who has made many i
Table of Contents
Preface ix
Introduction 1
Part I The Single Component Case: Optimal f 7
Chapter 1 The General History of Geometric Mean Maximization 9
Chapter 2 The Ineluctable Coordinates 21
Chapter 3 The Nature of the Curve 29
Part II The Multiple Component Case: The Leverage Space Portfolio Model 59
Chapter 4 Multiple, Simultaneous f—‘‘Leverage Space’’ 61
Chapter 5 Risk Metrics in Leverage Space and Drawdown 89
Part III The Leverage Space Praxis 139
Chapter 6 A Framework to Satisfy Both Economic Theory and Portfolio Managers 141
Chapter 7 Maximizing the Probability of Profit 157
Bibliography 183
Index 187
