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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.
Risk & moneyPosition 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.
Trading mathWhat Is Trading Expectancy and Why It Matters More Than Win Rate
Most traders track their win rate. They celebrate when it climbs above 50%, worry when it drops below, and use it as the primary measure of whether their strategy is working. This is a mistake.
Trading mathExpectancy, explained without the mysticism
One number decides whether time is working for you or against you. It takes five minutes to learn and most traders never calculate it.
Risk & moneyPosition 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 & moneyRisk 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.
Trading mathWhy win rate is the most overrated number in trading
A 90% win rate can bankrupt you. A 40% win rate can make you rich. Here is the arithmetic that decides which — and why the number everyone brags about barely matters.