The most important part of any trading system is the risk and money management. Many traders concentrate too much on the trading strategy with little focus on proper risk management. With proper risk and money management, your risk of ruin goes down exponentially.
Suppose, you are able to make a low risk 10% per month with 10% risk of losing with a trading system A. What this means is that out of 10 trades you make with trading system A, you will lose on average 1 trade. 10% monthly
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