This episode covers the topics of portfolio diversification, correlation, and balancing risk, with the objective of increasing the reward-to-risk ratio of your portfolio. Specific details covered:
- Achieving a diversified portfolio to reduce risk and smooth out drawdowns, across:
- Multiple asset classes
- Individual assets,
- Multiple timeframes
- Multiple trading strategies
- How to measure correlation between portfolio components
- Balancing risk across portfolio components
Brought to you by Darwinex: UK FCA Regulated Broker, Asset Manager & Trader Exchange where Traders can legally attract Investor Capital and charge Performance Fees: https://www.darwinex.com/?utm_source=youtube&utm_medium=video-description-above-fold&utm_content=mt-trader-evolution-26&atp_source=youtube&atp_medium=video-description-above-fold&atp_content=mt-trader-evolution-26
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https://www.linkedin.com/company/tradeslide-ventures/
This is Episode 26 in the Darwinex 'Trader Evolution' Playlist: https://youtube.com/playlist?list=PLv-cA-4O3y97cGBQ3pkD-ZtN9jNqMvpod
Further videos covering more detail of the issues raised in this video can be found here:
Introduction to Portfolio Diversification: https://www.youtube.com/watch?v=9NhvLP6JNTg&list=PLv-cA-4O3y96b0gk8x3yPbqVM2gqafZAw&index=42
Diversification across Asset Classes: https://www.youtube.com/watch?v=N7DSWdx6TYM&list=PLv-cA-4O3y96b0gk8x3yPbqVM2gqafZAw&index=45
Diversification within an Asset Class: https://www.youtube.com/watch?v=oLwAq-DmTo4&list=PLv-cA-4O3y96b0gk8x3yPbqVM2gqafZAw&index=46
Diversification across Timeframes: https://www.youtube.com/watch?v=yZOPukqBQ-U&list=PLv-cA-4O3y96b0gk8x3yPbqVM2gqafZAw&index=47
Trading Strategy Diversification: https://www.youtube.com/watch?v=DBK9q5gW_Co&list=PLv-cA-4O3y96b0gk8x3yPbqVM2gqafZAw&index=48
Balancing Risk across a Diversified Portfolio:
https://www.youtube.com/watch?v=tweIv4BVa9w&list=PLv-cA-4O3y96b0gk8x3yPbqVM2gqafZAw&index=50
Managing and Measuring Correlation: https://www.youtube.com/watch?v=gEwYlFOBb_U&list=PLv-cA-4O3y96b0gk8x3yPbqVM2gqafZAw&index=51
Plus see the next 5 episodes (39-43) for further information on 'correlation'
#PortfolioDiversification, #PortfolioManagement, #BalancingAPortfolio, #BalancingRisk, #TradingRisk, #PortfolioCorrelation, #TradingDrawdowns, #ReducingRisk, #Darwinex
Video Contents:
00:00 Diversification Techniques
00:21 Why Darwinex?
01:10 Understanding Diversification
03:13 Introduction to Diversifiaction
04:53 Diversification across Asset Classes
05:43 Diversification within an Asset Class
07:08 Diversification across Timeframes
07:36 Trading Strategy Diversification
08:19 Managing Portfolio Risk
09:14 Managing and Measuring Correlation
10:04 Summary and Next Episodes
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer
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