Better System Trader

With so much focus often on the actual trading strategies or investments, portfolio construction can sometimes become an afterthought… or not even considered.

However, as we’re going to hear about today, portfolio construction and optimization has the potential for huge increases in wealth…

But there are a number of aspects we need to carefully consider if we want to maximise the potential of portfolios.

Joining us today as our special guest is Adam Butler, CIO from quantitative asset management company Resolve Asset Management.

Adam has published some interesting research on portfolio construction and optimization, and he’s even provided a portfolio optimization framework that can guide investors and traders towards the appropriate optimization method.

In my discussion with Adam today, you’re going to discover:

• How some traders and investors apply rules to portfolio construction based on a flawed premise,
• How the ‘Portfolio Optimization Machine’ framework can guide investors toward the appropriate optimization method,
• Why some errors in estimates don’t have a particularly large impact on portfolio outcome and where the real challenges comes in,
• The differences in constructing portfolios in stocks versus futures,
• The multiple dimensions of diversification and how to approach the risks of rebalancing,
• How to choose the best portfolio construction and optimization technique for you,
• Plus much more.

Resources

• You can find more from Adam at investresolve.com
• Get a copy of the ‘Portfolio Optimization Machine‘ paper here
• Books mentioned on this episode:

Get the Transcript

Episode Released:

25 November 2018