- The 1% Rule (Refined): Calculating risk based on total account equity, not just available margin.
- R-Multiples: Measuring performance in units of risk (R) rather than currency.
- Drawdown Limits: Defining your absolute "stop-trading" threshold before catastrophic capital loss occurs.
Principles of Risk Management
Transitioning from "don't lose money" to "engineering sustainable growth."
The Mathematics of Survival
Advanced Position Sizing
- Volatility-Adjusted Sizing: Reducing position size in high-volatility regimes to keep your dollar-risk constant.
- Correlation Awareness: Avoiding "hidden leverage" by not over-allocating to correlated assets (e.g., BTC/ETH/SOL).