The Global Macro Edge: Maximizing Return Per Unit-of-Risk

by John Netto

With a proven personal track record of trading experience, John Netto, The Protean Trader, has found great success and personal satisfaction in working the market. Now, in The Global Macro Edge, he pulls back the curtain to reveal the tools and techniques he's used (and created) to identify and solve the largest problems facing investors, traders, and financial advisors today at a level of transparency rarely seen in books on investing.

The Global Macro Edge includes chapters from a talented team of market practitioners as it details how to maximize return per unit-of-risk. And, in the process, it shatters some of the longest held investment myths:
-More risk equals more return
-Money always find its most efficient home
-Emotions are your enemy
-Diversification is the only strategy you need

Today's markets offer fewer opportunities
Compensation should be based on returns
The Global Macro Edge presents a logical and robust investment framework that can help investors, traders, and financial advisors profitably navigate global markets by enhancing their operations, analytics, and execution. The Global Macro Edge gives you, the reader, both a top-down and bottom-up approach to Next Generation Investing that is driven by one overarching goal: maximizing return per unit-of-risk. Contributing authors include:

Foreword by Wesley R Gray, PhD

Neil Azous
Jessica Hoversen
Cameron Crise
Darrell Martin
Joe DiNapoli
Fotis Papatheofanous
William Glenn
Raoul Pal
Todd Gordon
Jason Roney
Patrick Hemminger
Bob Savage
Steve Hotovec
Denise Shull

John Netto is a cross-asset class trader and the creator of the Netto Number, the Risk Factor Compensation System, and the Protean Strategy, for which he was named by Collective2.com as Strategy Developer of the Month. Mr. Netto has conducted numerous live trading webinars where viewers watch his P&L, positions, and orders in real time for total transparency of his methods. He has appeared on CNBC s Fast Money, Closing Bell, and Squawk on the Street, as well as Bloomberg, CNN, Fox Business Channel, and PBS. Mr. Netto is also the author of One Shot One Kill Trading. Mr. Netto speaks, reads, and writes Japanese, Chinese, Portuguese, and Spanish to help him articulate his vision of the markets to an international audience.

A portion of the profits of this book will be donated to charities who train and place service dogs with military veterans.

Genres: Finance, Business, Economics, Nonfiction

580 pages, Hardcover

First published October 24, 2016

Reviews

[Finley Hunt · Rating 4 out of 5]

A very unique approach to global macro, with some useful ideas. Keeping strategies adaptable by updating risk budgets and allocations depending on the market regime is a central idea throughout, and clearly is one of the driving forces of sustainable alpha creation, alongside rigorous systematisation of nearly every factor. Some of the inputs to quantitative metrics aren’t explicitly given, as apparently they’re “proprietary,” which is unfortunate, though enough detail is given that one could create their own using the ideas. There are some errors worth noting though:
- The are no longer 21 primary dealers in the US treasury market, at the tike of writing there are 25.
- The LIBOR no longer exists.
- On page 797, 8 trading regimes are referred to, yet only 6 are listed.