DislikedAbout optimizing risk/reward as you have named it, I've learned a very simple principle from fti's thread TAF. When adding to a winner you add in a way that keeps your average price as far away as possible from market price. 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 .
The nail that sticks out gets hammered back in