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Topic: Business
Number of pages / Number of words: 7 / 1717
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The problem is that we don't know in advance which trial will benefit from increased size so increasing position size may leave us with large loss. Those trying to pick up tops and bottoms may sooner or later succeed, provided they still have capital left. Thus, we need to make an unrealistic assumption that we have unlimited capital when trading...


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Thus, we need to make an unrealistic assumption that we have unlimited capital when trading.

One of the ways to deal with risk and uncertainty of trading is to use some special software that makes risk strategies simple. The common feature of those pieces of software is that they use a technique called Monte Carlo simulation...


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