🔶 Volatility isn't risk. They get confused constantly.

Volatility is how much the price moves.
Up, down, doesn't matter. It's a measurement.

Risk is the chance you lose money permanently. That's an outcome.

❗️ Why the difference matters:
A strategy can swing a lot and still protect your capital.
Another can barely move and quietly bleed you out through fees and small losses.
Volatility feels dangerous. Risk actually is.

❔ The real question isn't "how much does this move?"
It's "how much can this lose, and can it recover?"

✅ That's why max drawdown matters more than daily swings.
Drawdown tells you what you'd have to survive.
Volatility just tells you how noisy the ride is.