Trading systems portfolio construction

A classic trader’s approach is to choose one market and specialize in trading it. As a result, a lot of traders focus on creating a single trading system. After all, if a system is good why should anyone bother to create a portfolio of trading systems?

In order to answer that we are going to take a slight dive into the Modern Portfolio Theory. It is considered as one of the most important and influential economic theories in the sphere of finance and investment. It was developed by Harry Markowitz in the 1950s.

Topics overview:

  • Why is it better to create a portfolio of trading systems instead of trading just one system?
    • Learn more about the modern portfolio theory;
    • What are the benefits of diversification?
    • How does risk decrease by trading uncorrelated assets?
  • How to apply the principles of this theory to your trading systems?
    • Learn what do you need to do in order to achieve an efficient trading systems portfolio.
  • How to find suitable systems for your portfolio?
    • You are going to go through the different approaches you can use to find suitable systems for your portfolio.

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