Recent content by raymond008375

I wanna know more.......may you tell me? I'm a finance graduate. And I also had some related knowledge about financial engineering......Yet my programming skills only stay at my high school level because my professors don't teach me about it. So if I wanna enter into a master degree in...

Well....can I interpret what you said in this way? When we talk about Port. Theory, we're going to estimate E(r) and ƒÐ. Since our estimation method "usually" use sample returns with a certain period (i.e. across a time period), actually we implicitly assume that the probability...

But positive skewness would mean that the "camel hump" is on the left......This means loss is more frequent, isn't? Referring to my graph just before, both of them are negatively skewed since they both have "camel hump" on the right. The only difference is that you would calculate a smaller...

Negative skew means the opposite....... The tail is on the left.....meaning that the probability of loss is low. You may check wikipedia or other sources for confirmation. And.....do you mean that comments on prop traders is prohibited in this forum?

I'm a prop trader in Swift Trade, but just for 2 months. My boss doesn't allow me to trade derivatives. But derivatives is my favorite subject anyway. So I want to learn sth from anyone here...... Do prop traders perform option strategies which can be seen ordinarily in textbooks? Such as...

IC......but I still have some problems..... Other than Normal, there will be some other dists can have the same properties too, won't it? e.g. t-dist......it also has zero third and fourth moments too.....why must we use Normal instead of other candidates? Do you know if there're any...

It's not easy to look at the distribution.......since we have sample estimates only, and the distribution itself will change over time... Well, distribution could really help understanding why risky, though not when.....

Type wrong....should be "The right one actually is riskier than the left one."

So......can I interpret your meaning in this way?« The risks involved when we perform certain trading strategies don't be able to be represented only by SD. Just like the graph. Both may have the same SD, but obviously their third moment (skewness) is very different. The left one...

But I don't understand what role would that skew play? Every distribution has its own SD afterall.....no matter if it's skewed or not. And what we only require is to maximize the excess return (i.e. E(r) - rf ) while minimizing the risk (i.e. SD).......this is how we interpret the Sharpe ratio...

I know if the distribution is highly negatively skewed, then the expected return E(r) will be high......leading to a high Sharpe ratio as you said. But I don't know why it's misleading? Even Normal distribution could have a high E(r)......so what's wrong with a high E(r) anyway?

So do you think that a (successful) Swift Trader can be appreciated by other "ordinary'' financial institutions, such as investment banks and fund houses? Actually I'm also working in Swift now....in Macau.

Is it really necessary to let the histrgram resemble Normality? What if it isn't Normal? I didn't see any assumption about Normality in Port. Theory by Harry Markowitz......