Mastery
·
9 min
The losers ratio and tail management
Long-run profitability is win rate times average win, minus loss rate times average loss. Sounds obvious. Most blow-up accounts violated it on a small number of trades.
In this lesson
- Walking the formula
- Why tail losses are where systems live or die
- Three sources of tail losses
- Pre-mortem before large positions
Read the full lesson in the app
The complete lesson, with worked examples, callouts, and a quiz to test yourself, is in Iron Condor Options.
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