Multi-criteria analysis: A practical approach

摘要

Multi-criteria analysis can improve investment results, but to be effective, you need to know the conditions where it thrives. Here is an examination of multi-criteria analysis vs. single-criterion selection.rnTrade selection is usually based on applying several criteria and evaluating potential profitability, risk and other characteristics. Last month, we described the main approaches to multi-criteria analysis (MCA) and presented the method of finding the optimal Pareto set. This represents the most appropriate approach to handling many potential trading alternatives. Here, we examine practical advantages of MCA vs. single-criterion selection, and analyze how these advantages are affected by different factors inherent in options trading.