CTAs Add Value, Reduce Risk of Hedge Funds

Adding CTA to hedge fund adds value, reduces risk.
Money Management
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CTAs Add Value, Reduce Risk of Hedge Funds
Adding CTA to hedge fund adds value, reduces risk.
Volatility Feeds Profits in Futures Industry
Shows how volatility is what feeds profits in the managed futures industry. Should be similar in other markets as well.
Low Sharpe Investment Addition Can Increase Sharpe Of Total Portfolio
How adding a low Sharpe ratio investment actually can increase your Sharpe Ratio of the total portfolio.
Why Client Returns Are Less Than Manager Track Records
A study on why Client returns are generally less than published returns on the very managers they hire.
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How This RANDOM Entry Beat The Market: The Tom Basso Coin Flip Proven and Explained
More free market research here: http://www.asxmarketwatch.com/2015/12/this-simple-indicator-smashes-buy-and-hold-returns/

Have you ever heard people say that a monkey with a dartboard can outperform the market? Although it's been quoted and requoted thousands of times, I believe it came from "A Random Walk Down Wall Street."

Van Tharp, in his book "Trade Your Way To Financial Freedom", outlined an experiment where he selected stocks at random - long and short - and used an ATR Stop with a 1% Risk Model (fixed fractional position sizing).

In this video I use the powerful tool, Amibroker, and 1000 different runs of 15 stock portfolios (Monte Carlo analysis) to see if, and how, this really works. The results will surprise you.


- Dave McLachlan
In this article, Mark Etzkorn of then Futures Magazine covers an interview with Tom Basso on the mental side of trading
A Little Leverage Is Good, Too Much Dangerous
A little leverage is optimal, too much is dangerous
Thoughts On Trading Intelligently
Some thoughts on trading intelligently.

This category of the research papers concentrates on papers that have been published over the years on either money management or trading topics.  They span decades of Tom Basso's life.