RT Journal Article SR Electronic T1 Trader Alpha Frontier: A Framework for Portfolio Managers and Traders to Maximize Portfolio Performance JF The Journal of Trading FD Institutional Investor Journals SP 88 OP 98 DO 10.3905/jot.2018.13.4.088 VO 13 IS 4 A1 Vlad Rashkovich YR 2018 UL https://pm-research.com/content/13/4/88.abstract AB Trader performance is currently measured against various benchmarks without consideration for the volatility of trading results. The author introduces trader alpha frontier (TAF) as a way to measure trader performance against the risks taken by the trader. This article formulates how to carve out trader alpha from overall portfolio returns. It also explores trader performance attribution by delineating between the main components of trader alpha and suggesting benchmarks to measure each component. As a result, the author unveils a new benchmark, called execution-weighted price (EWP). It is tough to reach TAF, but it is worth the effort since it aligns the mutual objective of a portfolio manager and a trader to maximize overall portfolio performance.TOPICS: Performance measurement, portfolio management/multi-asset allocation