) in a historical data set and allocating capital accordingly, often expressed as for simplistic, uniform, or theoretical scenarios.
"—trading at a conservative fraction to the left of the peak (e.g., half of Optimal ) in a historical data set and allocating
Example: If your Optimal f is 0.25 (25%), and you have a $100,000 account, you should risk $25,000 on the next trade. That doesn't mean you bet $25k; it means your position size is determined by dividing your largest historical loss by that f. often expressed as for simplistic