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Algorithmic Short Selling with Python

You're reading from Algorithmic Short Selling with Python

Product type Book

Published in Sep 2021

Publisher Packt

ISBN-13 9781801815192

Pages 376 pages

Edition 1st Edition

Languages

Concepts

Financial Technology

Author (1):

Laurent Bernut

Table of Contents (17) Chapters

Preface

The Stock Market Game

10 Classic Myths About Short Selling

Take a Walk on the Wild Short Side

Long/Short Methodologies: Absolute and Relative

Regime Definition

The Trading Edge is a Number, and Here is the Formula

Improve Your Trading Edge

Position Sizing: Money is Made in the Money Management Module

Risk is a Number

Refining the Investment Universe

The Long/Short Toolbox

Signals and Execution

Portfolio Management System

Other Books You May Enjoy

Index

Appendix: Stock Screening

Summary

This short chapter is not meant to test the braincells of the reader. It is simply a collection of practical tips on how to avoid classic expensive pitfalls and meet investors' expectations. Investors do not buy into long/short products for long ideas. They want low-volatility uncorrelated returns. This chapter considered investors' expectations, while avoiding the trap of thinking of the short book as an afterthought of the more fun long book. If those problem stocks are removed from your field of vision, they will not be on your mind and this will eliminate temptation.

Once you have distilled your investment universe and understood what is expected of you by investors, it is time to pull the trigger. In the next chapters, we will put everything together, and see how this can be done in practice.

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Authors (1)

Laurent Bernut

Laurent Bernut has 2 decades of experience in alternative investment space. After the US CPA, he compiled financial statements in Japanese and English for a Tokyo Stock Exchange-listed corporation. After serving as an analyst in two Tokyo-based hedge funds, he joined Fidelity Investments Japan as a dedicated quantitative short-seller. Laurent has built numerous portfolio management systems and developed several quantitative models across various platforms. He currently writes and runs algorithmic strategies and is an undisputed authority on short selling on Quora, where he was nominated top writer for 2017, 2018, and 2019.

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