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.