Introduction


The Exit Cafe is dedicated to helping investors and professionals of all experience levels be more aware of changes to their risk exposure and the importance of using an intelligent exit strategy to control and act upon risk.

The editorial manager and a frequent contributor to our blog is Chuck LeBeau, an industry leader in the application of technical analysis for risk management. We hope you find our blog enjoyable, educational and valuable. Please feel free to chime in on any stories or analysis posted.

Sep 24, 2009

Accelerate Returns by Controlling Risk

Accelerate Return-to-Risk Ratios with Higher Betas
Modern portfolio theory is based on the premise that volatility is the best definition of risk. However, like many popular assumptions, that may not be entirely true. This article will demonstrate how increased volatility, as measured by Beta, can be harnessed to provide higher returns without a commensurate increase in risk.

Link to article:

Instead of Modeling Risk, Why Not Control It?

The volatility investors faced within the equity markets in 2008 and 2009 led me to think about the changes I've seen as an equity trader and manager over many years. The basic principles of investing have remained constant throughout history. Successful investing is all about risk and reward; it always has been and always will be.

Link to article:

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