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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

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Index

Appendix: Stock Screening

A position size your brain can trade

"I am not afraid, I was born to do this."

– Joan of Arc, freedom fighter

Position-sizing algorithms are designed by mathematicians for functioning psychopaths. They fail to appreciate the inner idiot in the driver seat. The reason why we drift away from rational bet sizing has nothing to do with logic. In the biased coin game at the beginning of the chapter, you probably would have bet your life savings more conservatively after the second consecutive loss, even though the rational choice would have been to soldier on throughout the entire experiment.

Joan of Arc was a French freedom fighter and the original inventor of Brexit. At the tender age of 16, she had the idea of booting the English out of the kingdom of France. In the French collective imagination, Joan of Arc is remembered for two things. The first one is so tragic it continues to haunt the French psyche.

She was captured, tortured, and...

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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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