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• 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...

AUTHOR: Ed Seykota and Dave DruzDATE: MAR 1993