Meet Jack Schwager, Author of Bestseller Market Wizards, as he shares and reveals the magic behind his successful trading through appropriate Performance Measurement and Risk Management. He will also expose the common investing misconceptions and the trading mindset of a typical trader.

Register NOW and be transformed into the next Market Wizard yourself!

1. Common Denominators of the Market Wizards

Based on the interviews conducted in the three “Market Wizards” books. Jack will explore the unique traits which set successful traders who have achieved extraordinary success in the markets apart from typical traders.

2. Investing Fallacies —Correlation & Leverage

Commonly held misconceptions about Correlation and Leverage will be discussed as below:

• Introduction to Correlation
• Understand how Correlation can sometimes be very misleading
• The Difference and Relationship between Correlation and Beta
• Misconceptions about Leverage
• Discover why Leverage tells you nothing about Risks

3. Investment Fallacies —Explore The Various Trading Techniques

A variety of commonly held misconceptions about Investment will be discussed as below:

• The Flaws of the Sharpe Ratio as a Performance Measure
• The Key but often overlooked benefit of Broader Diversification
• Why Smooth Performance may not indicate Low Risk
• Why a Stop-loss is not always a Good Risk Management Tool
• Why Portfolio Optimization does not work for Hedge Funds
• Why Return/Risk is more important than Return even for risk-seeking investors
• Why High Volatility is not always a negative
• Why Longer Track records are not always significant and helpful
• Why Pro Forma results can range from futile to excellent
• Why Return/Risk comparisons between a Fund and the Corresponding Index are biased
• Why Fund with Higher Return/Risk may not be preferable to Fund with Lower Return/Risk

4. A Practical Guide to Performance Measurement & Risk Management

The following will be explained:

• Similarity between Investor and Systematic Trader: Investment = System
• Why Return is Irrelevant
• The Importance of “Hidden Risk”
• Multi-Dimensional Beta
• Understanding the Difference between Quantitative and Qualitative risk
• Quantifying Qualitative Risk: Correlation and Beta
• Quantifying Qualitative Risk: Negative Environment Analysis in Percentage and Averages
• Quantifying Qualitative Risk: Code Classification of Qualitative Factors
• Standard Deviation as a Measure of Risk
• Average Monthly Loss—A Nonsymmetrical Loss Measure
• The Sharpe Ratio—The Reason why it is a Flawed Measure
• The Sortino Ratio—Inaccurate Calculation
• The Gain-to-Pain Ratio—A Superior Return/Risk Measure
• The Omega Function and its relationship to the Gain-to-Pain Ratio
• Collapsing the Omega Function into a Single Number
• Skew, Kurtosis and Tail Risk Flag
• Left Tail Average Returns and Tail Ratios
• Diversification Measures
• Measuring Relative Performance & Ranking in Portfolio and Portfolio Components
• Correlation Matrix
• Coincident Negative Return Matrix
• Time Dimension and Stability—Rolling Stats vs Benchmarks and Multi-Period
• Equal Risk Allocation

5. Testing and Evaluating Trading Systems

• The Well Chosen Example
• System Simulation
• Optimization
• Confusion between Market and System
• Diversification
• The Effect of Luck
• The common errors of Typical Investors
• The importance of Volatility beyond Risk
• The Importance of Return/Risk
• Comparisons between Apples and Oranges
• Testing for Various Price Series
• Graphic Evaluation of Performance

Event Details Date : 21 Nov 2009 (Sat) Time : 9.00 am to 5.00pm Venue : Marina Mandarin Singapore Early Bird Fee : S$450* Normal Fee : S$550* *Course fees inclusive of course notes & lunch. Click here to secure your ticket and be on your journey to Successful Trading today! For enquiries, please call (65) 6323 1663 or email training@nextview.com

All forms of trading and investment carry risks. Such activities may not be suitable for everyone

Speaker Profile

Jack Schwager Author, Market Wizards and Schwager on Futures Investment Director, Fortune Group Jack Schwager serves as Investment Director at the Fortune Group, an alternative asset management firm that is a member of the Close Brothers Group, a London-based investment bank founded in 1878. Schwager is the lead portfolio manager for Fortune's Managed Account Program, a 100% transparent portfolio of managed accounts in alternative strategies. His prior experience includes 22 years as the director of futures research for some of Wall Street's leading firms and 10 years as the co-principal of a commodity trading advisory firm. Mr. Schwager is perhaps best known as the author of the best-selling Market Wizards (1989), and the equally popular The New Market Wizards (1992). A third volume in this series, Stock Market Wizards, published by HarperCollins, was released in early 2001. Mr. Schwager's first book, A Complete Guide to the Futures Markets, which was published in 1984, is considered to be one of the classic reference works in the field. More than a decade later he revised and expanded this original work into the three-volume series, Schwager on Futures, consisting of the following titles: Fundamental Analysis (1995), Technical Analysis (1996), and Managed Trading: Myths and Truths (1996). He is also the author of Getting Started in Technical Analysis (1999), which is part of John Wiley's popular “Getting Started” series. Mr. Schwager is a frequent seminar speaker and has lectured on a range of analytical topics with particular focus on the characteristics of great traders, hedge fund investment, performance measurement, technical analysis, and trading system evaluation. He holds a B.A. in Economics from Brooklyn College and an M.A. in Economics from Brown University.