Van Tharp Institute Glossary
The Van Tharp Institute Glossary is a comprehensive resource designed to help traders and investors understand the essential terminology and concepts related to trading psychology, systems development, and market analysis. Whether you’re a beginner or an experienced trader, this glossary offers clear definitions and insights into the principles that Dr. Van Tharp championed. By providing a deeper understanding of key terms, the glossary aims to enhance your knowledge and support your journey toward consistent and profitable trading. Explore the glossary to unlock the language of trading success.
Objectives
What you wish to accomplish as a trader with your account or your system. Objectives...
Ongoing Risk
A term referring to the monitoring and management (through position sizing strategies) of open risk...
Open Position Value
The price of an open position multiplied by the current number of units that you...
Open Risk
The difference between the current price and the value of the stop for all positions...
Open Volatility
The amount of risk exposure for an open position or all open positions based on...
Opportunity
See trade opportunity.
Optimal F
A method for determining position sizing developed by Ralph Vince that depends upon the worst-case...
Optimal Position Size
The best position sizing method to achieve your objectives.
Optimal Retire
The position sizing percentage that gives you the largest probability of reaching your stated goal.
Optimal Target Risk Percentage
The optimal portfolio heat divided by the number of trades you’re a likely to have...
Optimize
To find those parameters and indicators that best predict price changes in historical data. A...
Option
The right to buy or sell an underlying asset at a fixed price up to...
Options Spread
A trading strategy by which one opens two options positions at the same time and...
Oscillator
An indicator that detrends (normalizes) price. Most oscillators tend to go from 0 to 100....