DislikedAbout optimizing risk/reward as you have named it, I've learned a very simple principle from fti's thread TAF. [1]When adding to a winner you add in a way that keeps your average price as far away as possible from market price. [2]In case you are averaging down you should add in such way that you bring your average price closer to the market price.Ignored
From a quantitative perspective, there is a handful of parameters that determine whether or not money management can actually create an edge. Because identification of these parameters is quite advanced, I second fti's lesson [1].
The nail that sticks out gets hammered back in