Risk Management In Trading

A comprehensive resource for understanding how to minimize risk and increase profits In this accessible resource, Wall Street trader and quantitative analyst Davis W. Edwards offers a definitive guide for nonprofessionals which describes the techniques and strategies seasoned traders use when making decisions. Quantitative risk management models have become extremely sophisticated. Even so, risk management failures still occur with regularity. In many cases, these risk management failures are not due to calculation errors or inherently flawed models. Instead, failures often occur because of bad decisions resulting from misinterpreted or misused analysis. In Risk Management in Trading: Techniques to Drive Profitability of Hedge Funds and Trading Desks, veteran risk manager Davis W. Edwards bridges the gap between risk management theory and the practices used to make trading decisions. Some key topics include: Techniques to improve trading strategies like backtesting and portfolio diversification Controls around trading like daily mark to market, rogue trading analytics, and post-trade forensics The benefits and pitfalls of setting position limits using value at risk and expected shortfall measures How to transfer risk with hedging Managing the non-linear risks of option trading Limiting counterparty credit risk and calculating credit value adjustments (CVA) A comprehensive resource for understanding how to minimize risk and increase profits In this accessible resource, Wall Street trader and quantitative analyst Davis W. Edwards offers a definitive guide for nonprofessionals which describes the techniques and strategies seasoned traders use when making decisions. Risk Management in Trading includes an introduction to hedge fund and proprietary trading desks and offers an…