Trading Dominion – Ray Dalio – Portfolio investing

Trading Dominion – Ray Dalio – Portfolio InvestingSure. Doesn’t everybody?The problem is that we’re led to believe that investing our own money is too risky and we should therefore use hedge funds in order to take care of our long term investments.Financial concepts tend to sound quite complicated and involve either having to get deep into the weeds with complicated financial formulas, or resorting to having to become a programmer in order to code up even a simple investment strategy.While theaveragehedge fund performance has been lackluster, there are certain hedge funds thatdoperform very well. Ray Dalio runs one of the largest hedge funds in the world, called Bridgewater Associates, which as of 2018 manages over 125 billion in customer funds. Ray Dalio himself is a billionaire. So when a person like this makes a statement about having found the Holy Grail, then perhaps we should pay attention.Here is a short 4 min video, where Ray Dalio explains the concept of the Holy Grail. Note that he’ll reference a bunch of terms that you may be unfamiliar with (standard deviation, correlation, alpha, information ratio, etc). Don’t worry, by the time you complete this course, you’ll know and fully understand all of these financial terms.The main point he’s making is that the Holy Grail can be achieved by trading a variety of trading strategies or portfolios, where the return of each of these portfolios is unrelated to the others. When one strategy or portfolio is losing money, then hopefully the others aren’t losing money at the same time.The keys are to:a) have a variety of different portfolio strategies to choose fromb) be able to measure the degree of correlation between these strategiesYou’ll be learning both of the above in this course.The main aim of this course is to explain all of those technical financial terms in a way that is simple and easy to understand.Many of the concepts are explained visually, and we focus on understanding the core idea without getting deep into the weeds.We focus on things that are practical, and are later applied onto the analysis of real portfolios.We will build some spreadsheets together, step by step, in order to make sure that the concepts and calculations are fully understood and internalized.We’ll make use of some extremely powerful and functional online tools that can automate much of the portfolio analysis, and all without needing to write a single line of code.In the course we’ll cover around a dozen or so pre-made portfolios that you can start off with. Additional portfolios and trading strategy ideas will be added over time, as our community continues to grow and share ideas.Course contentsIntroductionReturnsMeasuring riskFactor modelsPermanent portfoliosMoving average filtersModern Portfolio TheoryDual MomentumOther portfolios