[sheepscreek]

> It's probably more about avoiding blunders than it is having some genius paradigm shifting idea.

I too believe this is key towards successful trading. Put in other words, even with an exceptionally successful algorithm, you still need a really good system for managing capital.

In this line of business, your capital is the raw material. You cannot operate without money. A highly leveraged setup can get completely wiped out during massive swings - triggering margin calls and automatic liquidation of positions at the worst possible price (maximizing your loss). Just ask ex-billionaire investor/trader Bill Hwang[1].

1. https://www.bloomberg.com/news/features/2021-04-08/how-bill-...

[sheepscreek]

Here is a simple way to think about it. The markets follow random walk and there is a 50/50 chance of being right or wrong. If you can make more when you are right, and lose less when you are wrong, you are on your way to being profitable.