Research preview

Crude oil has just finished a five‑day losing streak, the longest run of consecutive declines since August 2025. For quantitative traders, such a run is a natural laboratory for testing risk‑management tools that protect capital when markets move against a strategy. This article connects the event to core concepts from a quantitative risk‑management curriculum and shows how disciplined position sizing can dramatically affect long‑run outcomes. The Anatomy of a Losing Streak A streak of consecutive losses is more than a statistical curiosity; it is a stress test for any trading system. When a strategy suffers five straight drops, the cumulative impact on equity depends on two key variables: the fraction...