1  Cover

      2  Title Page

      3  Copyright

      4  Dedication

      5  Chapter 1: For Whom? Why? And How? 1.1 What You Will Find Here 1.2 Asterisks; Or, How to Read This Book 1.3 Acknowledgments

      6  Chapter 2: The Problem: From Ideas to Profit 2.1 How to Invest in Your Edge, and Hedge the Rest 2.2 How to Size Your Positions 2.3 How to Learn from Your History 2.4 How to Trade Efficiently 2.5 How to Limit Factor Risk 2.6 How to Control Maximum Losses 2.7 How to Determine Your Leverage 2.8 How to Analyze New Sources of Data Notes

      7  Chapter 3: A Tour of Risk and Performance 3.1 Introduction 3.2 Alpha and Beta 3.3 Where Does Alpha Come From? 3.4 Estimate Risk in Advance 3.5 First Steps in Risk Decomposition 3.6 Simple Hedging 3.7 Separation of Concerns 3.8 Takeaway Messages Notes

      8  Chapter 4: An Introduction to Multi-Factor Models 4.1 From One Factor to Many 4.2 ★Frequently Asked Questions About Risk 4.3 ★The Machinery of Risk Models 4.4 Takeaway Messages Notes

      9  Chapter 5: Understand Factors 5.1 The Economic Environment 5.2 The Trading Environment 5.3 The Company: Valuation Factors 5.4 Takeaway Messages Notes

      10  Chapter 6: Use Effective Heuristics for Alpha Sizing 6.1 Sharpe Ratio 6.2 Estimating Expected Returns 6.3 Risk-Based Sizing 6.4 ★Empirical Analysis of the Sizing Rules 6.5 From Ideas to Positions 6.6 Time-Series Risk-Based Portfolio Targeting 6.7 ★Frequently Asked Questions About Performance 6.8 Takeaway Messages Notes

      11  Chapter 7: Manage Factor Risk 7.1 Tactical Factor Risk Management 7.2 Strategic Factor Risk Management 7.3 Systematic Hedging and Portfolio Management 7.4 Takeaway Messages Notes

      12  Chapter 8: Understand Your Performance 8.1 Factor 8.2 Idiosyncratic 8.3 Trade Events Efficiently 8.4 ★Use Alternative Data! 8.5 ★Frequently Asked Questions About Performance 8.6 Takeaway Messages Notes

      13  Chapter 9: Manage Your Losses 9.1 How Stop-Loss Works 9.2 Why a Stop-Loss Policy? 9.3 The Costs and Benefits of Stop-Loss 9.4 Takeaway Messages Notes

      14  Chapter 10: ★Set Your Leverage Ratio for a Sustainable