What Is The Real Risk Of System Trading? by Perry J. Kaufman
By knowing the risk of being in the market, you can hedge and control portfolio volatility better. Here is a rundown of the most popular ways to evaluate and measure risk, as well as the strengths and weaknesses of each. In the end, you’ll find out what’s important and how you can use a spreadsheet to assess risk.
I realize that risk is not everyone’s favorite topic. It is, however, critical to being a successful trader and critical to survival. If you don’t understand your trading risk, you can lose everything. But what is your risk ...