Originally Posted by
;
This is a fantastic book but it's about the Kelly grade and tales about how Ed Thorpe put it in training. Peter Brandt rather mentioned that risk is dynamic, rather then statically defined first time we entered the transaction as we think. I.e we enter a transaction risking 1R and the TP is 10Rs away. However, if the price goes nearer to our TP, let's say at 2Rs distance from the target, we are risking 9Rs to make 2Rs, a bad bargain one might say. This varies anytime during the trade.