Why you should focus on risk-adjusted returns, not just absolute returns
About this episode
A trader can gun for 100% RoR, but at what cost?
You need to conjugate what you're doing with risk (and time).
Your open trade equity shows allocators the risk that you're taking for the returns your endeavoring.
Most allocators are looking at daily vol and risk-adjusted returns.
If your ethos is to chase hero-sized returns, you have to know that those are often a result of good timing.
And if you continually trade too big, it will catch up with you - it's just a matter of time.
Slow and steady wins the race.
Know what you're trading for.
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