I would like this to be added into myfxbook, it seems like a nice feature.

Love this site

Love this site

*Sit Tight and Keep it Simple.*

Myfxbook
(Staff)

Member Since Jul 31, 2009
1405 posts
Dec 07 2010 at 13:55

Waxavi, thanks for the compliments!

Can you show an example of such calculation?

Can you show an example of such calculation?

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!

I will find it as soon as I can!

*Sit Tight and Keep it Simple.*

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: https://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!

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: https://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!

*Sit Tight and Keep it Simple.*

James_Bond

Member Since Jan 14, 2010
556 posts
Dec 08 2010 at 17:00

Expectancy must be positive, there are different formulas, I think all of them reflect similar results.

*Sit Tight and Keep it Simple.*

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%)

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%)

Then that would be risk of drawdown (50%)?

*Sit Tight and Keep it Simple.*

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