: Use historical data and forward testing to ensure the system has positive expectancy. Trade Your Way to Financial Freedom: THARP - Amazon.com
: The average amount you can expect to win or lose per dollar of risk. Trade Your Way to Financial Freedom
: A system for measuring profits and losses relative to your initial risk (R), allowing for clear performance comparisons across different strategies. : Use historical data and forward testing to
Tharp outlines a structured process to build a robust trading plan: Trade Your Way to Financial Freedom
: Set clear return targets and maximum acceptable drawdowns.
: This determines how much to trade, which manages risk and prevents account "blow-ups".