30 free lessons + full glossary.
The difference between a compounding account and a blown-up one is the risk ceiling — not the number of trades or how clever they are.
At 2% of portfolio: ten consecutive losses ≈ 18% drawdown, recoverable in about two months.
At 5%: the same ten losses = 40%, a full year to recover. The math is simple but unforgiving: small numbers protect, big ones destroy.
Sharpe ratio measures return per unit of risk — not return alone.
50% return at 40% risk is far worse than 20% return at 5%. The first gives Sharpe ≈ 1.2, the second ≈ 3.5.
Rule: Sharpe under 1 is mediocre, above 2 is excellent, above 3 is exceptional. Raz has been running near 1.84 since 2022.
Three consecutive losses → automatic 24h pause for reassessment.
30 min before red economic news (Fed, CPI, NFP) → full close.
Portfolio drawdown of 6% in a week → halt until manual review. Silence during ambiguity is the strongest call the bot makes.
The Y-axis always deceives: a “beautiful” curve can hide a zoom level that amplifies ripples.
Watch the deepest trough (max drawdown) — that defines your psychological comfort during bad stretches.
Also watch trade size over time: a rising curve from doubling size is not the same as one from steady risk.
