Trader Tech Talk 017: Ralph Vince Calculates Your Optimal Trade Size!

This episode is an interview you will definitely want to hear!  There are a few names that are so well known in the finance industry that everyone has heard of them.  One of those names is Ralph Vince.   Mr. Vince has written dozens of definitive books for traders, books that master traders read over and over.  Mr. Vince’s books are deep and complex, they are geared for traders who have been trading a while, and they cover topics like The Handbook of Portfolio Mathematics, The Mathematics of Money Management, Risk Opportunity Analysis.

Ralph Vince gives us a first-hand look—a preview—of his current research work, and how position sizing affects your profits in trading.  He describes equations and graphs which are displayed here.

Ralph Vince is actually a programmer by trade, so we’ll get into some of the programming topics in this interview as well.  In this episode you’re going to learn a lot about the mathematics of position sizing, and how to calculate your optimal trade size, and you’ll learn Mr. Vince’s programming language of choice!

Resources:

 

The inflection point

The inflection point

The expected gain in tossing one coin here the horizon till we quite is 1 play

The expected gain in tossing one coin here the horizon till we quite is 1 play

The expected gain in tossing one coin here the horizon till we quite is 1 play and two plays, the line bends

The expected gain in tossing one coin here the horizon till we quite is 1 play and two plays, the line bends

This demonstrates what happens when we play two games simultaneously

This demonstrates what happens when we play two games simultaneously

The expected gain in tossing one coin here the horizon till we quite is 1 play to 8 plays, the curve approaches the asymptotic curve

The expected gain in tossing one coin here the horizon till we quite is 1 play to 8 plays, the curve approaches the asymptotic curve

 

 

 

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Comments

  1. David Roth says

    Very nice interview, please try to get more like these. The man is clearly an absolute genius, and it was very interesting to just hear him speak freely.

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