ABSTRACT
In this chapter, the author describes one plan by which the commitments were governed according to the consensus of trends in an entire portfolio of charts. To put people charts to work, they have to avail his self of the higher leveraged stocks that carry more opportunity for gain, hence, more risk of loss. The reader may judge for himself in the use of Composite Leverage or the author may considers the following brief presentation of modern portfolio management and risk analysis. The purpose of the author's Composite Leverage is to measure and control risk and profit exposure in a more or less quantitative manner. More important, if people maintain this risk posture in their operations, people will be protected against unconsciously overtrading. Systematic risk, simply put, is market risk in aggregate; beta relates the individual instrument risk to the market.
