Your entry is secondary to defined risk. Pick an entry, define the stop, then compute units: units = risk $ ÷ stop distance. That single step controls loss magnitude.
Plan position size before clicking buy. Convert stop distance to units automatically so your loss stays at 1% or your chosen cap. https://t.co/rTOYoi8JRC
A 40% win rate with average win 2R and average loss 1R yields positive expectancy. Compute expectancy: (Win%×R) - (Loss%×1). Focus on R multiple, not just wins.
Evaluate targets after sizing to ensure positive expectancy and realistic R:R. Use Problem Solvers to derive TP or SL from desired outcomes. https://t.co/rUuagibJR9
Sequence math: equity after n losses = equity × (1 - r)^n. With r=1%, after 10 losses equity = 0.99^10 ≈ 90.4% — a 9.6% drawdown, survivable versus larger r.
🚀 The Trading Risk Lab full tool suite is coming.
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• Problem Solvers
• Multiple Entries
• Partial Closes
• Scenarios
• Trading Journal
• Risk of Ruin
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Each tool page includes a video walkthrough showing how it works step by step.
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The Trading Risk Lab FREE Trading Calculator is now available.
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Today we’re launching Quant, the first AI to build indicators & strategies like a TradingView wizard.
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