When you've placed a one and only trade, the behavior of your equity is described perfectly by the behavior of your traded pair - they coincide!

What happens when you simultaneously place several trades in multiple assets? In doing so, you create synthetic assets - positions - whose economic attributes differ from standard assets.

Rather, the properties of your position are driven by:

  • the relative weight of each of the component assets in the trade
  • every asset’s volatility
  • prevailing correlation between all ingredient assets

We assess traders for skill at building synthetic assets (positions) whose value grows with controlled risk, as measured by D-Leverage. We don't analyze individual trades in isolation - this could lead to the wrong conclusions!

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