This is one of the most important series of lectures in the course. First there is description and understanding of the lizard brain and how it adversely impacts your trading performance. Moves on how to trade based on return of investment, with professional risk management, especially considering stop placement. Trade expectancy is then introduced in terms of targets, reward to risk, and win/loss percentage. Following lecture introduces the Monte Carlo analysis. The final aspect of the lectures is stop placement, both initial stops and trailing stops. Finally walk away stops are discussed. Of all the lecture series, this is the only set with 5 lectures and the implied importance is substantiated by this aspect.
|ROI and Position Sizing Lecture 1
|ROI and Position Sizing Lecture 2