Hello lyhung, Well that is a very deep philosophical question ... are you a philosopher by nature ... if not a complete answer would be wasted?
In trading, everything that can cause financial loss is a risk to be considered: - data delay or errors - broker slippage - insider manipulation - events (earnings change, company news etc) - computer/internet 'error' - incorrect strategy - anlytical error - correlation - psychological error - portfolio diversification - and many more All need to be considered and emlinated or contained. Your capacity to identify and control risk is a measure of your trading stature. Much of that has to be done outside of AB. However you probably would like a simple definition. It is your ave loss per trade (based on your stop loss) * the probability of losing per trade i.e. if you have a guaranteed stop loss of 2% then that is your risk per trade AND the risk to your portfolio is based on the probality that you will experience a run of losses. brian_z --- In [email protected], "lyhungvpsc" <[EMAIL PROTECTED]> wrote: > > How should we use AB to consider the risk??? (RISK and DECISION > ANALYSIS @RISK) >
