The importance of trading size by ProQuest

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The Leverage Space Model is a new and superior method for portfolio management that seeks to maximize geometric growth within a given drawdown constraint. This is in stark contrast to more conventional models, which seek to maximize return vs. the variance in those returns. While the trajectory represents the mode of the probability functions along it and is the single most likely outcome, the probability functions themselves are affected by possible events. In real life, price trajectories are not smooth, but they follow varying points within the cone. If a trading approach is profitable, there will always be a curve to this function, and it will have just one peak. This is true for any and every profitable approach to a given market. And, as just stated, because the parameters are given for determining where on an f curve an investor is, the authors cannot only discern what the f curve is, but precisely where on that curve the investor is trading.

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