Allocation Simulation Lab

Lesson Overview

In "Portfolio Strategies & Risk" → "Dynamic Allocation", this lesson "Allocation Simulation Lab" builds knowledge you can apply immediately.

Simulate equal weight vs. risk parity over 2 years. Compare portfolio Sharpe and max drawdown.

Core Concepts

These points align with the video walkthrough—take notes as you watch.

• ▸Simulate equal weight vs.
• ▸risk parity over 2 years.
• ▸Compare portfolio Sharpe and max drawdown.

Practical Application

After studying, complete the practice tasks below to move from understanding to doing.

• ▸Follow along in Jupyter or VS Code
• ▸Log how parameter changes affect backtest results
• ▸Submit a reproducible analysis notebook

FAQ

• ▸Q: How does this lesson fit the course? A: Part of "Dynamic Allocation"—follow the curriculum order.
• ▸Q: What do I need? A: Demo account and notes; quant lessons need a Python environment.
• ▸Q: How do I know I've mastered it? A: Pass the quiz and explain three key points of Allocation Simulation Lab on your own.