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The Delta, a Four-Part Series, Part 1: Understanding Your Delta

By Guy Bower of www.guybower.com*

If you have been trading options or warrants for even just a little while, you’ve come across the concept of the delta. It is a relatively simple concept that acts as a measure of the rate of change in an option’s price versus a change in the underlying market.

If you find a simple book on options or look at some of the brochures and information from various exchanges, you’ll see the concept of the delta receives some attention, but not much. This is also true for many of the warrant seminars and marketing materials you see.

The Value of Portfolio Testing

By Leo Zamansky, President, RINA Systems*
Posted: Jun 5, 2009

Portfolio testing is a method of testing a particular strategy (or group of strategies) on a portfolio of symbols, thereby, generating a performance report for that portfolio. Portfolio testing simulates the trading process when trading decisions on one symbol depend on the amount of portfolio equity, which is determined by the trades and positions for all symbols. Results produced via portfolio testing differ significantly when compared with performance from testing on an individual symbol.

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