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Draw-down

This tag is associated with 3 posts
Hedge or Not

To Hedge or Not

When markets crack and they do crack all the time, it doesn’t really matter whether your portfolio is made of high quality stocks or low quality, your portfolio will take a hit. The only difference would be in percentage with high quality portfolio’s tumbling way less than low quality portfolios. Derivatives were introduced to enable […]

Getting the right perspective #Nifty

As long as the going is good, one has not a care of the factors that are driving or the factors that are being ignored. But as soon as the markets start to react, all the worst kept fears start coming up as the reasons markets may continue to fall and even though markets are […]

The case for Draw-downs

The biggest worry for a Systematic Trader is the Draw-down number. Bigger the number, more he worries about his ability to trade the system since it can be ¬†psychologically difficult to maintain composure when a large part of the capital has been temporarily lost. I say temporarily because unless you throw the bath water with […]