So, I designed an experiment with my niece to see the impact risk management has on a trading system. To ensure the odds are on her favor, I gave her a 1:2 risk: reward system over 30 tosses.
She had to guess on the landing on the flip of coin, wining twice as much as she bet when she guessed right, and only loosing as much as she bet when she guessed wrong. With 50% probability of winning on each toss, over 30 coin tosses she should be profitable…. Read more