The Handbook of Portfolio Mathematics: Formulas for ... (ISBN 0471757683)

Optimal learning:
This is quite simply the most important investment book that you haven't read yet. Mr. Vince explains in a clear and forthright manner why position sizing is so important, demonstrates the importance of getting it right and shows you how to determine the correct position size for your approach. While Mr. Vince's past books were good, "The Handbook of Portfolio Mathematics" is a quantum leap forward. It brings together all his prior research and couples it with the benefit of many years worth of real-time application of his principals. The exposition is rigorous for those who want to delve into the math, while the prose allows the less mathematically inclined reader full access to his ideas. Mr. Vince stands on the shoulders of giants here. Claude Shannon and John L. Kelly laid out the basic framework as part of their research into communication theory and all too slowly it has been taken up by the investment community. The seminal paper in this area is Kelly's 1956 "A New Interpretation of Information Rate". Don't believe Mr. Vaibhav for even a second when he says that the material is this book is "not useful for real life applications". Nothing could be farther from the truth. The material in this book is not only applicable, it is essential in real-world applications. How else are you going to know how much to invest in any given transaction? Invest too much and run the risk of ruin, invest too little and you defeat your 'edge'. (The Ryan formula he references leads directly to underperformance.) Again, ignore Mr. Vaibhav when he suggests that there is too much volatility in this approach, which suggests that either he hasn't read this work or hasn't comprehended it. The volatility is a function of your edge and can be tamed to suit your preference in any number of ways. For example, in a pure optimal f application the trade-off between growth rate and volatility is absolutely clear cut and position size can be tailored to one's risk and reward preferences. You may not like the volatility that goes with straight optimal f, but if your want to grow your portfolio at its full potential rate, you'll accept it. I have known Mr. Vince for many years and he is quite simply one of the brightest minds in the industry. Do not miss this opportunity to share his insights into the investment process. John Bollinger, CFA, CMT President Bollinger Capital Management

classic vince and powerful:
Vince is the master of money management, for small or large traders. While it helps to be a math whiz, as vince is, a non math guy like me still 'gets' the point of how to make more money. I read everyhing this guy writes, do not be dissuaded by one negative review of an unknown...you will learn from this book.

Ralph does it again.:
Ralph Vince has produced a number of quality books on portfolio mathematics and analysis. This one is his best yet. Thanks Ralph.

If You Want To Be More Profitable -- Buy This Book Today:
This book is Vince's best book, and incorporates all the new knowledge he has accumulated since the publication of his earlier work. The more we are able to refine our money management and risk control the more profitable we will ultimately be. And, this book clearly shows you how to refine your skills in this area - and how to be confident enought to risk the right amount to maximize your return. Your confidence after reading this book will be gained from learning how to calcualte "relevant" risk amounts for each trade based on your current win ratio and payoff ratio by using the optimal f formulas. Vince is a skilled mathematician, and even if you are not, you can use his approach to obtain "relevent" data. Meaning -- don't just guess at what amount to risk, instead determine what your performance statistics are and base your decisions on that -- not on what another trader or educator suggests. In addition to this book by Vince, two other must have books on this subject are Balsara's "Money Management Strategies For Futures Traders" and McDowell's "A Trader's Money Management System". A Trader's Money Management System: How to Ensure Profit and Avoid the Risk of Ruin (Wiley Trading) Money Management Strategies for Futures Traders (Wiley Finance) With these three books you will have the foundation to confidently increase your profits by risking the right amount on every trade for optimal returns.

Essential:
Ralph Vince has created a masterwork; I love this book! I wholeheartedly recommend this book to anyone interested in optimal trading performance.