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Why Risk Management Beats Strategy

Every profitable trader will tell you the same thing: it is not the entries that pay you, it is the exits.

Why Risk Management Beats Strategy
Risk first, return second. Always.

You can lose money with a great strategy and a bad risk profile. You can also make money with an average strategy and a strict risk profile. The math is in the variance — small losers, controlled winners.

Last 30 trades — outcome distribution

The 19 winners do not look special on a candle chart, but their average size is 1.8x the size of the 8 losers. That is the only thing that matters.

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