#riskmanagement
3 posts tagged ‘riskmanagement’
Win Rate vs. Payoff Ratio — Which Matters More?
"I bought ten times and got eight right." Hearing this feels like real skill. That's an 80% win rate. Yet this person's account may be in the red. Conversely, t
What Is Rebalancing? — When Do You Re-Align?
Say you started out invested exactly 60% stocks, 40% bonds. A year later, that ratio is never still. If stocks rise a lot, before you know it you're at 75% stoc
What Is Maximum Drawdown (MDD)? — Why the Biggest Drop Matters Most
The Sharpe ratio looked at how much it swung; the Sortino at how badly it swung. But both are stories about "average variation." What actually makes an investor