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.

The techniques used are empirical.

There are characteristics of fixed fractional trading.

The normal distribution has a Parametric Optimal.

There aremetric techniques on other distributions.

There is an introduction to multiple simultaneous positions.

The Derivation of the Efficient Frontier involves correlative relationships.

Portfolios have a geometry.

Risk management.

There areAppendices.

There is a Bibliography and Suggested Reading.

Index.

About the author RALPH VINCE is a computer trading systems consultant who develops computerized futures, options, and stock markets trading strategies for traders, advisors, and software vendors. He is the author of the widely