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Member Since May 19, 2010 10 posts
Waxavi
Dec 04 2010 at 16:27
I would like this to be added into myfxbook, it seems like a nice feature.
Love this site |
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Member Since Jul 31, 2009 1049 posts
Ethan (Staff)
Dec 07 2010 at 13:55
Waxavi, thanks for the compliments!
Can you show an example of such calculation? Got a question? Need help? Send me a message! |
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Member Since May 19, 2010 10 posts
Waxavi
Dec 07 2010 at 20:52
LOL I don't know, sorry... I just used some js formula in some site that did the math.
I will find it as soon as I can! |
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Member Since May 19, 2010 10 posts
Waxavi
Dec 08 2010 at 13:38
ROR=1/(1 + %Exp)^(Ic/Ir)
Where %Exp is the Expectancy as percentage. Ic is Initial Capital. Ir is Amount at Risk per each trade. I would define Ic/Ir as how many consecutive losses a trader can afford before going broke, if I risk 1% per trade, then Ic/Ir= 100 Source: http://bit.ly/ggJsXa My prob. of losing my stake is 1.63^-53... so practically 0, I think the formula is too optimistic, I would like some people's opinion! |
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Member Since Jan 14, 2010 261 posts
James_Bond
Dec 08 2010 at 17:00
Here you go guys: http://www.futuresmag.com/Issues/2009/August2009/Pages/Minimizing-your-risk-of-ruin.aspx?page=1
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Member Since May 19, 2010 10 posts
Waxavi
Dec 08 2010 at 17:40
Expectancy must be positive, there are different formulas, I think all of them reflect similar results.
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Member Since Oct 06, 2009 47 posts
albator (stef)
Dec 08 2010 at 20:41
(edited Dec 08 2010 at 20:42 )
thanks wilkinson for this article very interesting
with this such good but simples formulas, i think it is simple for myfxbook to add risk of ruin information - proba (account loss 20%) - proba (account loss 50%) |
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Member Since May 19, 2010 10 posts
Waxavi
Dec 08 2010 at 21:55
Then that would be risk of drawdown (50%)?
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Member Since Oct 06, 2009 47 posts
albator (stef)
Dec 13 2010 at 21:52
yes, it's in the box
thans to all for this good idea and implementation |
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Member Since May 19, 2010 10 posts
Waxavi
Dec 14 2010 at 00:50
Consecutive Losing trades are based on average loss?
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