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This is roughly what countries own US treasuries: http://www.treasury.gov/resource-center/data-chart-center/tic/Documents/mfh.txt As you can see China owns a lot. In fact they own way more than any other nation. Why does China own so many? Because of the trade deficit between the US and China. What's that? China has gotten all of it's fortune by being ...

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Van Tharp, in his book Definitive Guide to Position Sizing, identifies 31 separate models for money management. In said book he specifically warns against using both the Kelly Criterion and Optimal f. In addition to the models identified by Van Tharp there is Ralph Vince's Leverage Space Portfolio Model.

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In statistical arbitrage, quant traders attempt to build a neutral portfolio by balancing various assets against each other. Each asset's size within the portfolio isn't determine necessarily by how much money it's expected to generate, but by how correlated it is against other assets. A simple approach is sector neutrality, in which sector/industry ...

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Maybe not really an answer, but a justification of your approach. It's likely that your results can be expresses as $$\mathsf EX_1 = 1.2\text{ and }\mathsf EX_2 = 2$$ where $X_i$ for $i=1,2$ is a random pf of a situation in a class $i$ (we denote it $S_i$). Your method solves the following problem: given a fixed number of trials we would like to ...

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Book with counterpart SwedishAlphaBank, with whom you margin in SEK: USD RUB SEK SEKPnL 0 0 0 0 Buy 100 SEK worth of USD/RUB, meaning buy USD and sell RUB. 100 -100 0 0 With RUB interest rate at 0 (!), USD/RUB moves to 1.1, USD/SEK stays flat at 1 100 -100 0 9.09 Square up back to SEK on USD and RUB: 0 0 ...

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