Jack Schwager in Singapore

Meet Jack Schwager, Author of Bestseller Market Wizards, as he shares and reveals the magic behind his successful trading through appropriate Performance Measurement and Risk Management. He will also expose the common investing misconceptions and the trading mindset of a typical trader.

1. Common Denominators of the Market Wizards

Based on the interviews conducted in the three “Market Wizards” books. Jack will explore the unique traits which set successful traders who have achieved extraordinary success in the markets apart from typical traders.

2. Investing Fallacies —Correlation & Leverage

Commonly held misconceptions about Correlation and Leverage will be discussed as below:

* Introduction to Correlation
* Understand how Correlation can sometimes be very misleading
* The Difference and Relationship between Correlation and Beta
* Misconceptions about Leverage
* Discover why Leverage tells you nothing about Risks

3. Investment Fallacies —Explore The Various Trading Techniques

A variety of commonly held misconceptions about Investment will be discussed as below:

* The Flaws of the Sharpe Ratio as a Performance Measure
* The Key but often overlooked benefit of Broader Diversification
* Why Smooth Performance may not indicate Low Risk
* Why a Stop-loss is not always a Good Risk Management Tool
* Why Portfolio Optimization does not work for Hedge Funds
* Why Return/Risk is more important than Return even for risk-seeking investors
* Why High Volatility is not always a negative
* Why Longer Track records are not always significant and helpful
* Why Pro Forma results can range from futile to excellent
* Why Return/Risk comparisons between a Fund and the Corresponding Index are biased
* Why Fund with Higher Return/Risk may not be preferable to Fund with Lower Return/Risk

4. A Practical Guide to Performance Measurement & Risk Management

The following will be explained:

* Similarity between Investor and Systematic Trader: Investment = System
* Why Return is Irrelevant
* The Importance of “Hidden Risk”
* Multi-Dimensional Beta
* Understanding the Difference between Quantitative and Qualitative risk
* Quantifying Qualitative Risk: Correlation and Beta
* Quantifying Qualitative Risk: Negative Environment Analysis in Percentage and Averages
* Quantifying Qualitative Risk: Code Classification of Qualitative Factors
* Standard Deviation as a Measure of Risk
* Average Monthly Loss—A Nonsymmetrical Loss Measure
* The Sharpe Ratio—The Reason why it is a Flawed Measure
* The Sortino Ratio—Inaccurate Calculation
* The Gain-to-Pain Ratio—A Superior Return/Risk Measure
* The Omega Function and its relationship to the Gain-to-Pain Ratio
* Collapsing the Omega Function into a Single Number
* Skew, Kurtosis and Tail Risk Flag
* Left Tail Average Returns and Tail Ratios
* Diversification Measures
* Measuring Relative Performance & Ranking in Portfolio and Portfolio Components
* Correlation Matrix
* Coincident Negative Return Matrix
* Time Dimension and Stability—Rolling Stats vs Benchmarks and Multi-Period
* Equal Risk Allocation

5. Testing and Evaluating Trading Systems

* The Well Chosen Example
* System Simulation
* Optimization
* Confusion between Market and System
* Diversification
* The Effect of Luck
* The common errors of Typical Investors
* The importance of Volatility beyond Risk
* The Importance of Return/Risk
* Comparisons between Apples and Oranges
* Testing for Various Price Series
* Graphic Evaluation of Performance

Date : 21 Nov 2009 (Sat)
Time : 9.00 am to 5.00pm
Venue : Marina Mandarin Sinagpore
Normal Fee : S$550*

More Jack Schwager related products at http://mastertrader.biz