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368: Profitable Algo Trading & Risk Management - Martyn Tinsley

Desire To Trade Podcast | Forex Trading & Interviews with Highly Successful Traders

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The Efficient Frontier

The efficient frontier is a concept used in modern portfolio theory. It's designed for much longer term holding of assets and constructing a portfolio that maximizes return over risk. The lower part of the curve down here, I don't really know if this has got a name, but I call it the inefficient frontier. This is where you should be aiming to get your position sizing relative to each other to get you onto this efficient frontier.

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