Capital partitioning is optional.
In simple terms: You have $50,000.00 worth of capital. You put $25,000.00 of that into your trading account, and the other $25,000.00 into a safe, liquid investment. You then risk 2% on each trade. This means you’re only risking half of the account, but trading as if it was the full amount.
In this lesson, Irek will explain capital partitioning in more detail, and how to use it as leverage and not to increase risk, but actually to lower risk.