Risk & Money Management
Position sizing, ruin, and drawdown — the math of staying in the game.
All 8 guides
Prop Firm Challenge Pass Probability: How Risk per Trade Changes Your Odds
Risk of Ruin Table: Probability of a 50% Drawdown by Win Rate and Risk
How to Pass a Prop Firm Challenge: A Math-Based Approach
Four out of five traders who pay for a prop firm challenge fail it. The problem is rarely the strategy — it is applying the strategy at a risk level incompatible with the challenge's drawdown rules.
How to Build a Trading Journal That Actually Improves Your Trading
Why a 50% Drawdown Needs a 100% Gain to Recover
There is a mathematical reality that ends more trading accounts than bad strategies, bad entries, or bad psychology combined. It is the asymmetry between losses and gains. Most traders understand intellectually that a 50% loss requires a 100% gain to recover. Few internalise what this actually means for account management and position sizing.
Position Sizing: The One Calculation That Separates Professionals From Gamblers
Two traders use the same strategy with the same entry signals and the same win rate. One ends the year up 40%. The other blows their account in month three. The difference is almost never the strategy. It's almost always position sizing.
Position sizing: the only risk lever you fully control
You cannot control whether the next trade wins. You can control exactly how much it costs you when it loses. That asymmetry is the whole game.
Risk of ruin: the math of not blowing up
Every strategy has a probability of total loss. Most traders have never computed theirs — and the formula is a century old.