V. 20:6 (54-59): Do Equations Tell The Whole Story? by Gordon Gustafson

Do Equations Tell The Whole Story? by Gordon Gustafson

Success in systems trading depends on having good trading systems and good money management practices. Optimal f can help you.

Once you have a good trading system, wouldn’t it be wonderful if you had an equation you could plug into a system to discover the perfect amount to risk on each trade? All you’d have to do would be to plug the results into a risk calculation and relax, knowing that the chances of ever losing again were practically nil.

It’s a nice idea. But the fact of the matter? Such equations could easily lead you astray.

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