Risk of ruin
Risk & psychologyThe probability that losses reduce capital to a point from which recovery is impractical.
In plain terms
A positive-expectancy system can still destroy an account. Position size decides which.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 1 term
The probability that losses reduce capital to a point from which recovery is impractical.
A positive-expectancy system can still destroy an account. Position size decides which.