Complete Algo Trader

Use this Nobel-Prize winning technique to determine the ideal quantity of stocks to hold in your portfolio.

Possibly one of the worst mistakes that any trader or investor could make would be to place all of their capital into a single position.

Though the effective degree of diversification is frequently contended and subject to personal opinion, there is no doubt that some systematic approach to portfolio allocation should be implemented.

Of the many means of portfolio allocation and optimization, this story aims to investigate the effects of Markowitz mean-variance optimization. I will demonstrate the effects of investing in an increasing quantity of low-covaried assets by portraying the efficient frontier of three hypothetical portfolios. This will show you how diversification and an optimal distribution of portfolio equity can reduce your investment risks while increasing your average return.

Click this link to continue reading my story on Data Driven Investor!

An in-depth look at the four moments of probability distributions and how they apply to quantitative finance.

When enrolling in a course to learn a new skill, you would hope and rightfully expect that the information being taught would be clearly and thoroughly explained by an articulate expert. When this isn’t the case, it can be absurdly frustrating to attempt to piece together bits of relevant knowledge from all over the web.

As a self-taught developer and algorithmic trader, I find myself in this situation nearly every day.

I recently enrolled in an online DataCamp course about portfolio risk management in python. Although I am glad that such a resource exists, it’s disheartening to see the minimal attention to detail and aggressive hand-holding for an intermediate-level curriculum.

In an attempt to reinforce my own learning while simultaneously providing supplemental references for those that want to learn statistics for quantitative finance, I will explain the four moments of statistical distributions. By the end of this story, you will understand what the four moments are and how you can use them to analyze risk in your own portfolio.

Click this link to continue reading my story on Data Driven Investor!