9 topics
Risk Management & Statistics
Expectancy, profit factor, maximum drawdown, risk of ruin, position sizing, and the biases that make backtests look better than reality.
Library categories
These lessons measure whether a method is worth trading. They use simple formulas and worked numbers instead of promises.
- Beginner
Expectancy
The average result per trade in R, with a worked example.
Read lesson - Beginner
Profit Factor
Gross profit divided by gross loss.
Read lesson - Beginner
Maximum Drawdown
The largest peak-to-trough fall of the equity curve.
Read lesson - Intermediate
Risk of Ruin
How risk per trade changes the chance of a crippling loss.
Read lesson - Beginner
Position Sizing
Size from equity, risk % and stop distance.
Read lesson - Intermediate
Look-Ahead Bias and Overfitting
Why tuned backtests fail on new data.
Read lesson - BeginnerFull guide on The Tradeskill
Risk Management and Probability
Playbook lesson: losing streaks, drawdown and risk rules.
Read lesson - BeginnerFull guide on The Tradeskill
Entry, Stop, Target and Reward-to-Risk
Playbook lesson with a reward-to-risk calculator.
Read lesson - IntermediateFull guide on The Tradeskill
Journal, Replay and Backtesting
Playbook lesson: testing a method honestly.
Read lesson