Home   Contact   Free Easy language code


Determining Optimal Risk Three traders... why did one make so much more?


  • Experienced traders know the importance of risk control. Risk little, you win little.

  • Risk too much, you may wipe out your account.

  • The optimum, is somewhere in between.

  • The chart on the left shows how important optimizing risk actually is to end profits

  • Computing optimal risk  online formula


  • Three traders all do identical trades

  • All start with the same amount

  • All traded at the the same time

  • All traded at the same price

  • All traded the same market

  • One made three times more than the other!

  • Why such a difference?



Placing a trade with a predetermined stop-loss point can be compared to placing a bet:


The more money risked, the larger the bet.


Conservative betting produces conservative performance, while bold betting leads to a can lead to a devastating collapse of equity.


A bold trader placing large bets feels stress from the volatility of his portfolio. A high stress portfolio keeps more at risk than does a low stress one.



  • Optimum risk the reason why great traders are great traders!


  • Also its one of the so called "secrets of making millions"




Determining Optimal Risk.....more

Studies of risk stress show several factors, which are:

1 Trading systems have an inherent optimal risk.

2 Setting the risk level is far more important than trade timing.

3 Many traders are completely unaware of either of these two factors.

In the article you can download below, you can read how optimal risk trading can net you much higher overall returns than any other method.


Presented are a series of examples which proves this is absolutely true.


The full formula in excel is also contained within the download, just simply enter your trading statistics into the sheet and you will know exactly how much to risk on each trade to get optimum profitability from your trading.


You may be sceptical to believe that such a "magic formula" exists and to indicate my confidence in this product I issue a full money back guarantee if you are not completely satisfied.


Still not convinced? View example here


Download article and Excel spreadsheet




  Site map    Risk control   Contact    Trivia  Free Easy language code




  • Futures, Forex and Stock trading contain substantial risk and are not for every investor.

  • An investor could potentially lose all or more of the initial investment.

  • Risk capital is money that can be lost without jeopardizing ones financial security or lifestyle.

  • Only risk capital should be used for trading

  • Only those with sufficient risk capital should consider trading.

  • Past performance is not necessarily indicative of future results.





Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.