A forex classroom, ready to adapt.

1. 4 min - Name the quantities

   Ask learners to label a risk budget, pip value, lot size, margin and free margin with their units. Collect a first answer before discussing it.

2. 5 min - Trace the currency conversion

   Use D02-D04 to trace contract units to quote-currency pip value and then account-currency pip value. Ask where the familiar 10-per-pip shortcut would fail in E01.

3. 10 min - Exercise E01: size the yen position

   Learners calculate independently, show the units and round down to the stated lot step. They then check the jpy-position case in Decision Lab and explain any correction. Enter the exercise assumptions explicitly when using a calculator.

4. 5 min - Separate collateral from a loss budget

   Use D13-D14 to distinguish existing used margin, the new margin requirement, remaining free margin and the separate stop-loss budget. Available margin is not a recommendation to open a position.

5. 10 min - Exercise E06: check the account

   Learners calculate the new notional, margin requirement and post-position free margin before checking the margin-risk case. Compare these with the separately calculated planned price-move loss.

6. 6 min - Explain and check

   Pairs identify one unit error and one margin-versus-risk error the examples prevent. Finish with the individual check questions; record the explanation as well as the number.

Inputs are synthetic and fixed. E01 excludes execution costs; E06 uses a simple leverage model without tiers or offsets. Planned stop-loss loss and free margin do not bound an actual trade's loss. Neither calculation establishes a safe risk percentage or broker-specific account rules.

1. 4 min - Read the labels first

   Present E02's gross results and ask whether a cost has already been included. Each learner states what 1R means before calculating.

2. 6 min - Build one gross-to-net bridge

   Use D05-D06 to separate gross expectancy, additional cost in R and net expectancy. Mark where a second deduction would count the same cost twice.

3. 10 min - Exercise E02: does the stated edge survive?

   Learners calculate gross expectancy, convert the 1.5-pip additional cost into R and derive net expectancy. Check the execution-costs case, then compare with the expectancy calculator using the same assumptions.

4. 5 min - Compare a stop instruction with a fill

   Use D15 to distinguish E07's planned 20-pip stop from its supplied 35-pip adverse closing distance. Ask what evidence would be needed to analyse a real execution rather than this supplied example.

5. 9 min - Exercise E07: reconcile the loss

   Learners calculate price-move loss and round-trip commission separately, then add them once. Check the gap-execution case and reproduce it in the profit/loss calculator where the supplied assumptions can be entered.

6. 6 min - Exit check

   Learners explain one omission and one double-counting error. Use the check questions independently; require a gross/net label or cost label on each answer.

These are synthetic examples, not measured execution quality or a future cost distribution. The gross-to-net example holds win rate and payoffs fixed. Changing a stop can change a strategy's outcomes; the cost ratio alone cannot select a better stop. Actual order handling depends on product, order terms and broker.

1. 4 min - State the unit and scope

   Ask what a pair name hides about its two currency legs and what a partial exit hides about the remaining position. Learners label exposure, cash P&L and R as different measures.

2. 6 min - Build a currency-leg table

   Use D07-D08 to represent the three supplied long base/USD positions. Keep exposure units separate from the stated 100 USD stop-loss budget for each position.

3. 10 min - Exercise E03: find the common leg

   Learners calculate and sum the negative USD legs, then separately sum planned stop-loss budgets. Check the usd-concentration case and inspect the same synthetic positions with the portfolio-exposure tool.

4. 5 min - Keep one full-trade denominator

   Use D17-D18 to draw the two exit volumes against the original 1.00-lot position. Keep the initial price-move risk of 200 USD as the stated denominator of R.

5. 9 min - Exercise E09: combine the partial exits

   Learners calculate each partial's gross cash result, add them, deduct the single full-trade commission and convert the total to R. Check the partial-exit case. If calculating each leg separately, reconcile costs across the whole trade rather than charging the full commission to each exit.

6. 6 min - Reconcile and explain

   Pairs review units, signs, volume weights and cost allocation. Finish with individual answers to the check questions.

Prices, volumes and outcomes are synthetic. A shared currency leg does not establish a correlation estimate or identical price behaviour. The exposure representation does not imply literal currency borrowing. The partial-exit calculation evaluates the supplied exits; it does not show that partial exits improve a strategy.

1. 4 min - Predict before calculating

   Show E04's two sequences. Learners predict whether final equity and maximum drawdown must be identical, recording the predictions separately.

2. 6 min - Introduce the running peak

   Use D09-D10 to demonstrate one row of the equity table and identify the drawdown denominator. Explain that profit relative to initial capital can coexist with a drawdown from a later peak.

3. 10 min - Exercise E04: calculate the path

   Learners complete sequence A's table and find maximum drawdown. Compare its path with sequence B before checking the backtest-sequence case. Discuss what conditional resampling can illustrate and what fresh evidence it cannot create.

4. 5 min - Change the recovery denominator

   Use D16 to distinguish a loss measured against starting capital from a gain measured against remaining capital. Learners identify the two denominators before applying a formula.

5. 9 min - Exercise E08: restore the starting amount

   Learners calculate the gain required after the supplied 25% loss, then verify it in the drawdown-recovery case and drawdown calculator. Explain why the arithmetic says nothing about how quickly that gain could be earned.

6. 6 min - Individual exit check

   Use the check questions. Each learner gives one reason a reassuring final return is an incomplete description of the path. Do not turn the example into a recommended position-risk setting.

Paths and recovery inputs are synthetic, with no cash flows or execution variation. The 10% risk fraction makes the arithmetic visible; it is not a safe or recommended threshold. Resampling is conditional on its observations and model. It does not establish future drawdown, ruin probability or the attainability of a recovery return.

1. 4 min - Define the sample

   Ask whether five rows necessarily mean five completed trades. Learners write an inclusion rule before inspecting the E05 records.

2. 6 min - Audit the records

   Use D11-D12 to separate plans, completed outcomes and the explicitly known accidental duplicate. Require a reason for each inclusion or exclusion; do not remove an inconvenient losing trade.

3. 9 min - Exercise E05: compute a defensible mean

   Learners select unique completed trades, report sample size and calculate mean realised net R. Check the journal-quality case. If demonstrating the journal analyzer, first reconcile the file with the worksheet and stated inclusion rule.

4. 6 min - Separate selection from evaluation

   Use D19 to distinguish searching 100 training variations from evaluating one version frozen before the holdout observations. Ask what happens to the test's role if rules change after its results are seen.

5. 9 min - Exercise E10: report the unseen result

   Learners calculate the holdout mean without adding the training result or deducting already-included costs. Check the out-of-sample case. With D20 and the strategy testing protocol, draft a record of the frozen version, sample boundary and next evaluation step.

6. 6 min - Write a limited conclusion

   Use the check questions. Each learner writes one sentence reporting the result and sample size, followed by one sentence describing what those observations cannot establish.

Records and strategy results are invented teaching data. The duplicate is known to be accidental; real records need an audit trail rather than deletion based only on a repeated-looking row. Three or five observations are descriptive examples, not evidence of stable performance. This lesson assesses record handling and reasoning, not profitability or readiness to risk money.