- The Core-Satellite Approach: Keeping 80% of capital in low-risk, systematic trades while using 20% for "alpha" opportunities.
- Correlation Matrix Management: Actively monitoring the correlation between your open positions to ensure you aren't unintentionally over-leveraged in a single direction.
Advanced Portfolio Management
Moving beyond single-trade risk: Orchestrating multiple strategies to achieve consistent, risk-adjusted returns.
Capital Allocation Models
Measuring True Performance
- Sharpe & Sortino Ratios: Evaluating if your returns are actually justified by the risk you are taking.
- Calmar Ratio: Measuring your return relative to your maximum drawdown—the ultimate test of an advanced trader.