Picture an account that closes most days in the red and still finishes the year well ahead. The journal reads as a wall of small losses, the equity curve grinds…
Stanley Druckenmiller is widely cited for two reasons. The first is the reported record at Duquesne Capital, often described as roughly thirty percent average annual returns over nearly three decades…
Marty Schwartz became widely known in trading circles through his chapter in Jack Schwager's Market Wizards and through his own memoir Pit Bull: Lessons from Wall Street's Champion Trader. What made him interesting…
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…
A trader buys near-the-money call options two days before an earnings report. The stock prints, moves 1.4% in the right direction, and the calls still close down 22%. The chart…
A swing trader risks 2% of a $50,000 account on every trade. The rule has held since the first month of the journal. Then the VIX prints 38 on a…
How Cover's universal portfolio algorithm sizes positions without assuming a known edge, adapting allocation as market evidence accumulates over time.
Paul Tudor Jones is most often introduced through one trade, his short positioning around the October 19, 1987 crash, when the Dow Jones Industrial Average fell about twenty two percent…
Hard drawdown stops feel disciplined but force near-cash exposure after losses, destroying Sharpe ratios. Here is what the research says and what works better.
Use the Kelly criterion to size swing trades with win rate, payoff ratio, fractional Kelly, drawdown caps, portfolio budgets, and uncertain edge estimates.