Rachev RatioRisk Management
The Rachev Ratio takes the expected tail return and divides it by the expected tail loss. Since its dividing expected return by a measurement of risk, higher is always better.
The 1% expected tail return would be divided by the 99% expected tail loss. The 5% expected tail return would be divided by the 95% expected tail loss, and the 10% expected tail return would be divided by the 90% expected tail loss. Essentially, you want to subtract the percentage expected tail return from 100%, and that will give you the expected tail loss percentage in the denominator. In all cases, use the same time period to get accurate results.
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International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
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