Math Checks Out - Risk Management Calculator and Equity Curve Generator

This Reddit post explains some Risk Management basics for Trading - 20230221094234.

Forecasting is Key

You have to do Backtesting - 20230128055528 to know your win rate and your reward-to-risk. This way you can estimate the risk units you can get each month on average.

3 Parameters for Profitability

Profitability in Trading - 20230221094234 comes from 3 parameters:

• Number of trades
• Reward to risk
• Win rate
  

The Spreadsheet

To calculate our position sizing, we can use spreadsheets. There's one in the Reddit post: risk management spreadheet.

I've customized it to make it suit my needs for Forex. Here's the link: [[Risk Management Calculator and Equity Curve Generator.xlsx]] (local) or spreadsheet (online)

Related Notes

META

Status:: #wiki/references/zotero/online
Related:: Trading - 20230221094234

Link:: www.reddit.com/r/Daytrading/comments/y7gqvk/math_checks_out_risk_management_calculator_and/
ZoteroLink:: @cranky_cryptoMathChecksOut2022
Author:: Cranky_Crypto
Year:: 2022

Consumed:: true
Reconsume:: false
Rating:: 8
Priority::
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