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Concept / Trade Management

Trader’s Equation

The relationship between probability, risk, and reward that determines whether a trade makes sense.

First course anchor

13A - Trader’s Equation

Open source lesson

Evidence stack

Course references

These relationships are currently derived from Al Brooks lesson topics. Books, ES reviews, and research notes should later attach to this same concept instead of creating parallel concepts.

Uses (9)
  1. 13A - Trader’s Equation Market Cycle / 13A - Always In
  2. 30A - Trader’s Equation How to Trade Prerequisites / 30A - Trader’s Equation and Probability
  3. 30C - Probability is most important How to Trade Prerequisites / 30C - Trader’s Equation and Probability
  4. 30E - 70% – 90% probability! How to Trade Prerequisites / 30E - Trader’s Equation and Probability
  5. 30E - TR probability high near top and bottom How to Trade Prerequisites / 30E - Trader’s Equation and Probability
  6. 34A - Trader’s Equation and risk How to Trade Prerequisites / 34A - Actual Risk
  7. 37B - Trader’s Equation and 40 – 60 Rule Trading Price Action Patterns / 37B - How to Trade
  8. 38D - Higher probability after BO Trading Price Action Patterns / 38D - Trading MTR Tops
  9. 10 - Scalps must be high probability: But some are still losers Bonus Videos / 10 - Scalping series- #02 Scalping 2-minute Emini Chart