50% loss of starting capital

Discussion in 'Strategy Development' started by monee, Feb 23, 2007.

  1. monee

    monee

    I would like to figure out a formula to see the maximum # of contracts that could be traded to allow 50 trades before an account balance fell to 50% of the starting balance.

    Ideally the number of trades would be 50 before the account value is 50% of starting balance.

    The #'s I know are :
    Starting capital
    Each trade has a risk of 1.5% of total capital
    Each trade has a risk of 3 ES points
    or for ER each trade has a risk of 3 ER points


    Thanks in advance.
     
  2. What is your win % and average profit / loss per trade?

    Those are the missing two variables you need to factor. If your win percentage is 90% or 20%, actual results by fifty trades may vary.
     
  3. Get some charting and testing software, do some backtests.
     
  4. monee

    monee

    Assuming the worst.

    Every single trade in a row is a loser and the loss is 1.5% of starting capital.