Trading Risk: Enhanced Profitability through Risk Control
Average customer rating: 4 out of 5 stars
  • A decent book on risk
  • Basic with good ideas but nothing exceptional. Very common sense stuff.
  • Dissapointed. Not practical.
  • A good course on Trading and/or Trading Risk Management
  • Trading Risk by Kenneth Grant
Trading Risk: Enhanced Profitability through Risk Control
Kenneth L. Grant
Manufacturer: Wiley
ProductGroup: Book
Binding: Hardcover

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ASIN: 0471650919

Book Description

Revolutionary techniques that traders can implement to improve profits and avoid losses

No trader, professional or individual, can afford not to have a solid risk management program integrated into his or her trading system. But finding a precise mathematical model to replace subjective decision-making processes is a challenge. Traditionally, risk management has focused solely on loss avoidance, but in Trading Risk, hedge fund risk manager Kenneth Grant presents some-thing completely new—how to manage a portfolio to minimize risk and increase profits by putting more capital at risk. Trading Risk details a risk management program that can help both money managers and individual traders evaluate which elements in a portfolio are working efficiently and which aren’t. By illustrating an extremely simple set of statistical and arithmetic tools this book can help readers enhance their performance in many financial markets.

Kenneth L.Grant is Cheyne’s Global Risk Manager, and is the Managing Member for Cheyne Capital, LLC, the firm’s U.S. arm. Mr. Grant is a pioneer in the field of hedge fund risk management and capital allocation. Before joining Cheyne, he created risk control programs at two of the world’s leading hedge funds, Tudor Investments and SAC Capital, where he was eventually promoted to the title of Chief Investment Strategist. Mr. Grant holds a Bachelor of Science in Economics and Mathematics from the University of Wisconsin, an MA in Economics from Columbia University, and an MBA from the University of Chicago Graduate School of Business.

Download Description

Revolutionary techniques that traders can implement to improve profits and avoid losses No trader, professional or individual, can afford not to have a solid risk management program integrated into his or her trading system. But finding a precise mathematical model to replace subjective decision-making processes is a challenge. Traditionally, risk management has focused solely on loss avoidance, but in Trading Risk, hedge fund risk manager Kenneth Grant presents some-thing completely newhow to manage a portfolio to minimize risk and increase profits by putting more capital at risk. Trading Risk details a risk management program that can help both money managers and individual traders evaluate which elements in a portfolio are working efficiently and which arent. By illustrating an extremely simple set of statistical and arithmetic tools this book can help readers enhance their performance in many financial markets. Kenneth L.Grant is Cheynes Global Risk Manager, and is the Managing Member for Cheyne Capital, LLC, the firms U.S. arm. Mr. Grant is a pioneer in the field of hedge fund risk management and capital allocation. Before joining Cheyne, he created risk control programs at two of the worlds leading hedge funds, Tudor Investments and SAC Capital, where he was eventually promoted to the title of Chief Investment Strategist. Mr. Grant holds a Bachelor of Science in Economics and Mathematics from the University of Wisconsin, an MA in Economics from Columbia University, and an MBA from the University of Chicago Graduate School of Business.

Customer Reviews:

4 out of 5 stars A decent book on risk.......2006-10-01

I think this book covers the topic of risk adequately. I got it last year and finally got around to reading it this week. If I had to buy it today I would probably pass, at $55 its twice what I paid for it in November. Someone must really like it?

I read this book to further refine my risk strategies. What I found was a book that explained risk in detail, but did not seem to offer me much in the way of finetuning my system. Although it did give me more confidence in my system and confirmed to myself that I am on the right road.

I liked the story of one risk manager from the book. This person had pages and pages of complex mathematical formulas to arrive at his funds risk levels. But if you turned over the page it said "equals five percent". LOL. So my 5% risk strategy has been correct all this time and I didn't have to use a Cray supercomputer to arrive at that number!

If you are new to risk assesment or need to figure out complex hedging risk strategies this is a good book. If you have a pretty good understanding of risk already, you may want to pass on this book.

3 out of 5 stars Basic with good ideas but nothing exceptional. Very common sense stuff........2006-08-25

I suppose if I had read this when I started to trade 14 years ago, it would have helped me. If you've traded for more than four years, you should already know most of the things covered in this book or you are an ex-trader. The book is mostly targetted towards money managers which is somewhat different from what I do which is proprietary trading in fixed income. The book will help you understand to risk less when you are down and risk more when you are up. Nothing earth shattering. I personally liked "Fortune's Formula" a lot better although the subject matter differs. Overall a good solid book for a novice trader.

2 out of 5 stars Dissapointed. Not practical........2005-08-12

If you are looking for a book whith detailed risk management techniques this is not your book. This book is oriented to money managers that are currently aplying risk control and want to read some stories about that. There is no practical information that allows the reader to implement a real risk control mechanism. Just ideas like "keep your volatility below 10% of your trading capital" or "make a correlation analysis of your P/L with everything to see if you find something". Too much stuff to say "be prudent"

If you want to understand the mathematics of money management, risk control and position sizing you'd better read RALPH VINCE. I suspect that those that are publicy dissapointed with optimal f do not understand the issue very well. In "the new money management" by Vince you have a clear procedure to obtain the maximum profit from your money with the risk level you are comfortable with. (dynamic fractional f).

If you (like me) are looking for new ways to get the best for your money, with examples and practical demostration of the statements so you understand every single line do not buy this book. I does not provide that.


4 out of 5 stars A good course on Trading and/or Trading Risk Management.......2005-06-13

Perhaps some reviewers might disagree but to me this is just an intermediate to advanced level trading book that focuses primarily on risk management with decent coverage of systematic risk management strategies or tools (say, correlation analysis on P/L vs holding period, VAR, number of positions, exposure level etc etc) plus many vividly written stories of traders anonymous that help traders of all levels to sharpen their edge.

To those traders who are willing to go and work the extra mile for better defense in the trading battlefield, it can really help, for sure. In other words, those who are already preparing their own daily trading journals or have somebody else to complete the job will definitely benefit from the advice of this book. However, if you wont bother to do even the minimal daily book keeping job, not to say those relatively complicated analysis made easy by software readily available in the market, please give this book a pass.

5 out of 5 stars Trading Risk by Kenneth Grant.......2005-01-29

Unlike most financial authors, Grant has the highest credentials, having been entrusted by legends like Paul Tudor Jones and Steve Cohen to calculate risk on their billion dollar portfolios. Many traders ignore the subject of risk as too dry, even though it is far more important to trading success than buy and sell signals. Grant makes this argument well, and his advice about going against one's natural emotions during drawdowns is alone worth the price of the book. It is disrespect for risk that kills most traders (including professionals) - reading this book could save your trading career. I recommend reading it in conjunction with Taleb's 'Fooled by Randomness' to drive home the importance of measuring risk more conservatively than you might have imagined. Essential reading.
Starting Out in Futures Trading
Average customer rating: 4.5 out of 5 stars
  • Buy the updated version!!
  • Good Content / Great Value
Starting Out in Futures Trading
Mark Powers
Manufacturer: McGraw-Hill
ProductGroup: Book
Binding: Paperback

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ASIN: 0071363904

Book Description

One of the best-known futures traders explains how to trade for profit in today's global futures marketplace

Look into the bookcase of any successful futures trader, and odds are you’ll find a worn, well-used copy of Mark Powers’s Starting Out In Futures Trading. In this new edition—the best-selling book’s first update since 1993—Powers reflects on the many new forces that are shaping the industry. From new rules and regulations to the emergence of electronic trading and the Internet, Powers’s unquestioned knowledge and experience cover all the key basics in the world of futures trading—and show traders from novice to veteran how to profit in that world.

The perfect starting point for a new trader, and a valuable refresher for anyone, Starting Out In Futures Trading, Sixth Edition, covers: