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

John Netto

ISBN 10: 1457534762 ISBN 13: 9781457534768

Publisher: Dog Ear Publishing, 2016

Synopsis

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.

About this title

From the Author

I would like to share some of my personal goals for writing The Global Macro Edge. I have a tremendous amount of passion for music of all varieties. When I hear music that inspires me, it is priceless and more valuable than any material possession. One particular artistic inspiration for Global Macro Edge was the song "Hello" by Adele. Not that I want to pass the essence of such a somber tone to the reader, but the raw nature of Adele's work and the authenticity you feel when you hear her voice transcends explanation.

I bring up Adele's song because, in 2015 and 2016, the efforts to finish this book took on a completely new level of commitment. In the second half of 2015, I moved out of Las Vegas with my wife and into my mom's house with only one goal: finish this book. My mother has a beautiful home in Bear Valley Springs, California, located in the Tehachapi Mountains, about two hours northeast of Los Angeles.

My supportive wife and I saw more elk, deer, and rabbits on most days than I did people. I needed to put myself in as much seclusion as possible, and Bear Valley Springs was my Walden Pond.

After writing a few hours in the morning, I would go on a walk to gather my thoughts and listen to that song. Every single time, it would give me goose bumps. I told my wife many times that one of my goals was for Global Macro Edge to give us "market musicians" goose bumps every time we read it. I hope you "as a reader" feel my passion and love of the markets--I hope it resonates in every word, that the intangible feelings I experienced (the very X Factor I draw upon in my personal trading) would come across in addition to the naked exchange of knowledge.

Combine these feelings with the desire to work with a talented group of people to create something that would stand the test of time and help define our generation of investors for the generations that would follow. I wanted to create something raw, authentic, and palpable that people would feel. I wanted people to know that they should not accept something at face value and give them something they can latch onto and inspire them to move forward in the form of proven processes, not just great anecdotes. I want the readers to believe that with the right time horizon, discipline, and game plan they can actually use the markets to change their lives. And even as I went through many struggles and a two-year project that was supposed to be done at the end of 2012 turned into a three-year project and then a four-year project and then a five-year project and I could hear all the snickering and doubts, I knew all along that we had to get the knowledge out there and empower people to look at the markets and Wall Street through a new lens. This is one of the big factors that drove me during all of the struggles to get a 580 page book done. I lead this literary project with all of these great contributors because it's what had to be done and any other outcome besides finishing this was not an option...

From the Inside Flap

Excerpts from John Netto's The Global Macro Edge:

"Conventional investing asks, "What was my return?" The Global Macro Edge asks, "What was my return per unit-of-risk?"

"...this realization about the inefficiency of allocating capital was profound for me. It helped me understand, at the most basic level, one of the many reasons why opportunity exists in the market."

"The hedge fund world is a great place to find alpha and an even better place to overpay for beta..."

"The more efficient the braking system, the faster you can drive your car."

"When I start to get too comfortable in a position, it makes me nervous."

"Risk taking with impulse leads to regret. Risk taking with process leads to success."

Edition details

• Publisher: Dog Ear Publishing
• Publication date: 2016
• ISBN 10: 1457534762
• ISBN 13: 9781457534768
• Binding: Textbook Binding
• Language: English
• Number of pages: 580
• Editor: Michael Golik CFA