In this tutorial we describe what Money Management is, and highlight some of the key differences between Money Management and the Risk of a trading strategy.
We go through a brief example to highlight how the risk that a trader assumes can change based on e.g. trading frequency, even if the underlying patterns or behaviours of the strategy in effecting trades remains the same.
We conclude with why traders need to quantify the actual risk they assuming when trading the markets, and why it's even more important to do so if they are looking to attract investor capital.
#darwinex #moneymanagement #risk
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