So you pick a position, that is not very volatile and decide your stop is 10% of the entry price. Numerically it looks like this: - 50 usd entry price - 10% stop = 5 usd = 1R So based on the system you need to buy 1.000 : 5 = 200 shares, but the price is 50 USD, so you end u The whole R concept is flawed, and unfortunately lost me a lot of money to understand it.Īccording to the system, if you put 2% of your portfolio at risk per position (say 1.000 USD per 50.000 USD portfolio). Here's what I mean: According to the system, if you put 2% of your portfolio at risk per position (say 1.000 USD per 50.000 USD portfolio). The whole R concept is flawed, and unfortunately lost me a lot of money to understand it.
