RISK MANAGEMENT
Risk management is the process of identification, analysis, and acceptance or mitigation of uncertainty in investment decisions.
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Strategy optimization involves refining and adjusting trading strategies to achieve the best possible performance under various market conditions. In trading, strategy optimization uses historical data and testing to fine-tune risk management, asset selection, and execution methods. Traders use optimization techniques, such as backtesting and forward testing, to identify the most effective parameters for their strategies. This process ensures that traders can maximize returns while minimizing risks and adapting strategies to changing market environments.