Popular Articles
Risk
20.07.2026
What Max Drawdown Tells You About a Strategy
Max drawdown is the gut-check number that tells you how bad things got before a strategy recovered. It measures the biggest drop from a portfolio’s peak to its lowest point before hitting a new high - and it’s one of the quickest ways to see whether your capital (and your nerves) can handle a given approach. In this article, you’ll learn what max drawdown really captures, why it can look worse or better depending on the timeframe, and the common mistakes people make when comparing strategies. We’ll also show how to use it alongside other risk metrics, set realistic expectations for “normal” drawdowns, and apply it in real decisions like position sizing, leverage, and selecting between two trading systems.
Risk
14.07.2026
Hedging a Portfolio Without Killing Returns
Hedging is one of the best ways to stay invested through rough markets - but it often comes with a trade-off: the protection can quietly eat into your returns. This guide walks through practical ways to limit downside risk while still keeping room for upside, so your portfolio isn’t permanently weighed down by expensive “insurance.” You’ll learn how different hedges work in real life (not just in theory), when they tend to help or disappoint, and how to think about costs like option premiums, carry, and missed gains. With clear, actionable tactics and real-world examples, you’ll be able to choose protection that fits your goals without turning long-term growth into an afterthought.
Risk
08.07.2026
How Much Should One Holding Ever Be?
How big should any one position be in your portfolio? It’s a deceptively simple question that affects everything from long-term returns to how well you can sleep during a drawdown. In this article, we break down the real factors that drive smart position sizing - your time horizon, conviction level, volatility, liquidity, and how correlated the holding is with the rest of your portfolio. We also look at the risks of going too concentrated (one bad earnings report can do real damage) versus spreading yourself so thin that winners don’t matter. You’ll get practical sizing approaches - like percentage caps, risk-based sizing, and rebalancing rules - plus real examples showing how position size can make or break portfolio results.
Risk
02.07.2026
How to Manage Portfolio Drawdowns
Big portfolio drawdowns can shake even seasoned investors, not just emotionally, but by exposing weak spots in risk management, diversification, and follow-through. This article is for anyone dealing with ongoing declines and looking for practical ways to limit losses without abandoning long-term goals. You’ll find concrete tactics - like tightening position sizing, improving hedges, rebalancing with discipline, and stress-testing assumptions - along with real metrics and examples that show how portfolios can be adjusted before and during a downturn to stay resilient and keep compounding over time.
Risk
26.06.2026
Risk Parity Explained (and When It Fails)
Risk parity is an investment strategy allocating portfolio risk instead of capital. Designed to balance risk contributions from asset classes like equities, bonds, and commodities, it aims for smoother returns. This approach attracts fund managers and savvy investors seeking diversification beyond classic methods. However, risk parity struggles during crises when correlations spike and volatility surges.
Risk
20.06.2026
How to Size a Position by Volatility
Position sizing by volatility adjusts trade size based on the asset's price swings to control risk dynamically. This approach suits active traders and portfolio managers seeking consistent risk exposure despite market changes. Using volatility measures like ATR or standard deviation, investors can reduce oversized bets on volatile assets and increase stakes in calmer ones, improving risk-adjusted returns over time.