01
Position Sizing From a Fixed Risk
22 min4 topics
The calculation that turns a stop distance and a risk budget into a lot size.
- Risk budget per trade
- Stop distance in pips
- Pip value on this pair
- Rounding down, and why
Risk and Money Management
The track that decides whether an edge ever reaches your account. Most of it is arithmetic you can do before the trade.
INTERMEDIATE- 8 lessons
- 32 topics
- ~2.8 hrs
By the end of this track
You can size any position from a fixed money risk and say what a losing run would do to your account before it happens.
What this track covers
Sizing a single trade
Position size is an output, not an input. It comes from the stop.
02
Where a Stop Belongs
20 min4 topics
Placing a stop at the level that proves you wrong, not at the loss you feel like taking.
- Invalidation, defined before entry
- Structure stops
- Volatility stops
- What to do when the stop is too wide
03
Risk-Reward and Thinking in R
20 min4 topics
Measuring every result in units of what you risked, so results across pairs and sizes become comparable.
- R as a unit
- Win rate and R together
- The break-even line
- Plans that fail on arithmetic alone
Surviving a run of losses
Losing streaks are not a sign the edge is gone. This module says how long a normal one is.
04
Expectancy: What Your Edge Is Worth
20 min4 topics
One number that says whether a strategy makes money, and what it does not tell you.
- The formula
- Per trade and per month
- Sample size before you trust it
- Why positive expectancy is not enough
05
Drawdown and What It Does to an Account
22 min4 topics
The asymmetry between losing and recovering, and why it gets worse quickly.
- Recovery is not symmetric
- Expected drawdown from your own numbers
- Normal streak or broken edge
- Setting a stop-trading level
06
Risk of Ruin
22 min4 topics
The probability that a finite run of trades ends your account, even with an edge.
- What ruin means here
- Inputs that drive it
- Why 1 percent and 3 percent are not three times apart
- Picking a number you can live with
Risk across positions
Four trades at one percent each are not four separate one percent risks if they are the same trade.
07
Correlated Exposure
20 min4 topics
Why several positions can turn out to be one large position in disguise.
- Shared currencies, shared driver
- Aggregating risk across positions
- Caps per currency and per theme
- Correlation that appears only in a crisis
08
Leverage Discipline as a Rule
20 min4 topics
Writing down the limits before you are in front of a screen wanting to break them.
- Available leverage versus used leverage
- A total exposure cap
- Scaling down after losses
- Scaling up, slowly
8 lessons · ~2.8 hrs