Risk experiments
The mathematics of drawdown
Understand how losses compound and why recovery becomes progressively harder.
How losing streaks behave
Explore why normal variance can produce uncomfortable sequences of losses.
Risking 1% vs 5% per trade
Compare account survival and drawdown behavior under two risk levels.
Accounting for correlated risk
See how several positions can create one concentrated exposure.
Simulations
Monte Carlo simulation
Use repeated random paths to estimate the range of plausible system outcomes.
Can a 40% win rate be profitable?
Test how payoff size changes the meaning of win rate.
Random entry and risk control
Separate loss control from the positive expectancy required for profitability.
Data insights
Why accounts blow up
Examine leverage, escalation, concentration, and missing limits.
Compounding gains and losses
Understand asymmetric recovery after percentage drawdowns.
Consistency vs prediction
See why stable execution is necessary to measure a strategy.
How to read the research
Worked examples expose their assumptions and are designed to teach mechanisms. They are not forecasts. For publication standards and sourcing, see the editorial methodology.Simulations explain ranges and probabilities. They do not predict the exact path of a live trading account.