Uniform risk allocation

Uniform risk allocation is the easiest method of portfolio allocation/optimization to understand. It basically says we take the total amount of risk we are allowed to or willing to take across the entire portfolio, and distribute it equally among all available trading strategies. Intuitively, this is a good starting point or a baseline allocation method when we don't have a historical performance record for any of the trading strategy, since nothing has been deployed to live trading markets, but in practice this is rarely ever used.

..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.
Reset
3.137.185.180