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Product typeBook
Published inSep 2021
PublisherPackt
ISBN-139781801815192
Edition1st Edition
Concepts
Financial Technology
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Laurent Bernut
Laurent Bernut
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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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Exits

Exits are split between unprofitable and profitable exits. The former aims at survival while the latter builds prosperity. We copiously discussed exits in Part II, The Outer Game: Developing a Robust Trading Edge. Below is a step-by-step short encapsulation that covers both the practical aspect and the mental hygiene of exits.

Stop loss

Stop loss has a direct measurable impact on three out of the four variables in the trading edge formula: win rate, loss rate, and average loss. For this reason only, it always sits at the top of the priority list. Remember that what separates pro short sellers from tourists is the ability to set stop losses and honor them. Think of what follows as an essential checklist. We covered all those topics throughout the book, with particular emphasis in Chapter 7, Improve Your Trading Edge.

  1. Set the stop loss at a logical articulation where the thesis is invalidated
  2. Set a loss mitigation trailing stop: This has two positive...
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Algorithmic Short Selling with Python
Published in: Sep 2021Publisher: PacktISBN-13: 9781801815192
© 2021 Packt Publishing Limited All Rights Reserved

Author (1)

author image
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.
Read more about Laurent Bernut

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