E-Learning Platform

Get full access to the E-Learning System:

Activate E-Learning 5

Course: Money and Risk Management

Lesson Insights

The experiment of Ralph Vince

Ralph Vince is an American financial engineer and author who is known for his work in portfolio management and trading strategies. He conducted an experiment to determine the effect of position sizing on the returns of a portfolio. The experiment aimed to find a relationship between the size of the investment and the risk involved, as well as to determine the ideal size of a trade.

The experiment involved making trades using a fixed fractional position sizing method, where the position size was determined as a fixed percentage of the portfolio's equity. The results showed that the returns were directly proportional to the size of the investment, and that using a fixed fractional position sizing method reduced the risk involved and improved the overall performance of the portfolio.

Ralph Vince's experiment highlights the importance of position sizing in trading and investing and has been influential in shaping the modern portfolio management theory. This experiment is described in this lesson.

Additional content, strategies, stories, analyses, and tables for this lesson:

"Money and Risk Management"

+ for all the other lessons as well!


Strategies - Stories - Tables


Get access for more than 65 strategies, 34 tables and all the extra contents!

Only $19 / month

Activate SHORTS 5

Additional content for this lesson:


Trading Terminology

Demystify the world of trading with our Trading Terminology Shorts category. We bring you concise definitions and relatable analogies to help you understand the ins and outs of stock market trading, making your educational journey even more enjoyable and rewarding.


Finance Titans

Discover the titans of finance who've shaped the world of stock exchanges and digital currencies. Dive into the lives and legacies of these financial luminaries and learn about their contributions to the ever-evolving landscape of modern investment.


Trading Insights

Dive deep into the world of trading and finance with our comprehensive essay collection, covering a wide range of topics in detail. Explore in-depth analyses of financial phenomena and gain a richer understanding of the mechanisms that drive markets and investment strategies.


Scenario Snapshots

Explore Scenario Snapshots, a category that offers a hands-on approach to understanding stock market concepts and strategies through real examples. Master the art of trading by following step-by-step calculations and explanations, helping you grasp complex ideas and apply them to your investment journey.


Reading Corner

Build your financial library with our Reading Corner Shorts category, offering expert recommendations on the best books covering various stock market topics. Learn from the masters and elevate your trading skills with these must-read titles.