Position sizing, risk-reward ratios, drawdown management and long-term capital preservation.
Morgan Housel makes a distinction that took me a decade of trading to understand and about ninety seconds to read. A fee is what you pay to get something. A fine is a punishment for doing something wrong. They cost…
Here is a bet. I flip a fair coin. Heads, your stake grows by fifty percent. Tails, it falls by forty percent. Work out the expected value. Half the time you multiply by 1.5, half the time by 0.6. The…
There is a number in your trading journal that is lying to you, and it is the biggest one on the page. It is the profit and loss column. Not because the arithmetic is wrong, but because currency is the…
Trader’s Library · Book Review Trade Your Way to Financial Freedom by Van K. Tharp Explore all 80 books in the Trader’s Library → If you can name three trading books, one of them is probably about psychology, another is…
Trader A lost $3,103 across 1,797 trades in 17 months. This series has spent nine posts dissecting why. We have found that the trader was operating above the break-even line on win rate (51.3%). We have found that gold worked…
If you wanted to lose money in this dataset, the easiest way was to trade Bitcoin. If you wanted to make money, the easiest way was to trade the German DAX or US30, both of which the trader almost completely…
Six accounts passed. Six accounts breached. The trader was the same person. The platform was the same. The strategy was, in their own description, the same gold setup. By any reasonable expectation the outcomes should have clustered. They did not.…
You can win nine of your first ten prop firm trades, be up money on day one, and still blow the account a month later. We have the receipts. This is the third post in our forensic series on 1,797…
A complete guide to overnight risk for traders holding positions through gaps, news events, and weekends. Covers sizing down into the close, instrument-specific rules for Gold, Oil, NQ, and BTC, and the pre-close checklist that protects your capital.
One change. Three seconds per trade. Twenty-nine thousand dollars in difference. This is part of our forensic series on 1,797 real prop firm trades from 12 anonymised accounts placed between September 2024 and March 2026. Six accounts passed. Six breached.…
The complete framework for scaling out of winning trades. When to take partial profits, how to manage the remainder, and the exact rules that prevent you from giving back gains — without closing too early.
Maximum Adverse Excursion (MAE) tells you exactly how far winning trades typically move against you before recovering — and uses that data to set better stops. A complete guide to collecting, analysing, and applying MAE data to your ICT trading.
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