Risk of Ruin: The Sizing Math That Keeps You Alive

A trader can be right more often than wrong, collect two dollars on every winner for each dollar lost, and still drive the account to zero. It sounds impossible until…

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Trend Following Strategy: Why Skew Creates Long-Run Edge

I look back at one of my own ledgers and the pattern is always the same. Eight months of small losses and tiny scratches, the equity curve flat enough to…

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Sortino Ratio: Penalising Only Downside Volatility

The sortino ratio is a risk-adjusted return measure calculated as a strategy's excess return over a minimum acceptable return, divided by its downside deviation. The formula in one line is…

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