How does TRADING RECIPES treat drawdown and risk?
TRADING RECIPES treats drawdown as maximum dip in equity, not open equity. Also, having a predefined stop in your system is not critical to sizing positions as you can define risk any way you please. We like to define it as what you stand to lose. Many traders who use TRADING RECIPES, including some well known ones, define risk as some measure of volatility. It’s your call.
