Risk Management & Capital Preservation

Mathematical frameworks for determining the correct trade size based on account and risk parameters.

How to evaluate whether a trade setup offers favorable odds before entering.

The golden rule of capital preservation, why risking 1-2% per trade keeps you in the game.

Strategic placement of exit orders, ATR-based, structure-based, and percentage-based methods.

Understanding, measuring, and recovering from drawdowns, the math of survival.

Two approaches to position sizing over time, constant size vs growth-adjusted sizing.

The mathematics of ruin, how many consecutive losses your account can withstand.

Circuit breakers for your trading, enforced limits to prevent catastrophic loss days.

How correlated positions multiply risk and how to manage portfolio-level exposure.

Total risk across all open positions, measuring and limiting overall portfolio exposure.