Kosta Ouzas argues that fixed stop-losses are targets for the market, not protection. Professional traders instead use three principles: dynamic invalidation, probabilistic risk, and time as a tool. This approach lets traders scale from 10k to 100M without breaking the system.
And the institutions, they don't obsess over a single invalidation line. They don't hand their entire future to one single candle. And they certainly don't treat risk as a gut feeling. They operate from three principles, principles that are universal across every serious trading desk. First one is that invalidation is dynamic. The second one is that risk is probabilistic. And the third is that time is a tool, not a threat. These principles don't just help you to survive, they actually help you to scale from 10k to 100k to a million to $100 million or more. And the system, it doesn't break.
