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optimization

A collection of 4 issues

What Is the Efficient Frontier in Portfolio Design?

Introduction: Why the Efficient Frontier Matters When investors think about building a portfolio, two questions come up immediately: How much return can I earn, and how much risk do I have to take? Modern Portfolio Theory (MPT), introduced by Harry Markowitz in 1952, provides a mathematical framework for answering those

Understanding Leverage: How to Multiply Your Results

Introduction Leverage is the strategic use of borrowed resources or existing assets to amplify your potential return on investment, productivity, or influence. From Wall Street traders to small business owners, understanding leverage unlocks opportunities that would otherwise be out of reach when applied wisely and carefully managed. What Is Leverage?

Gradient Descent in Algorithmic Trading

Introduction to Gradient Descent Gradient descent is a foundational optimization algorithm in machine learning that iteratively adjusts model parameters to minimize a cost function. In algorithmic trading, where decisions must be made at high speed and scale, gradient descent enables traders to fine-tune predictive models that forecast price movements, manage

Cryptocurrency Portfolio Optimization: Efficient Frontier Construction, Expected Return Modeling, and Dynamic Risk Budgeting

Introduction: Why Optimization Matters in Crypto Investing Cryptocurrency markets are famously volatile and increasingly crowded. With thousands of digital assets, new derivatives, and 24/7 trading windows, building a sustainable investment strategy can feel overwhelming. Portfolio optimization offers a disciplined, data-driven answer. By systematically allocating capital across coins and tokens,