Determining Optimal Risk by Ed Seykota and Dave Druz
ARTICLE SYNOPSIS ...Determining Optimal Risk
by Ed Seykota and Dave Druz
Seasoned traders know the importance of risk management. If you risk little, you win little. If you risk too
much, you eventually run to ruin. The optimum, of course, is somewhere in the middle. Here, Ed Seykota
of Technical Tools and Dave Druz of Tactical lnvestment Management, using subject matter and
materials that they have used in lectures and workshops around the US, present a method to measure
risk and return.
Placing a trade with a predetermined stop-loss point can be compared to placing a bet: The more
money risked, the larger the...