Hey, I have been searching around for a while to come up with a formula for calculating the minimum capital I'd need for my system(s). After thinking about it a little while I realized that calculating something like that is very subjective to each person. People have different criteria for what they consider safe, or lets them sleep at night. I tried making my own, simple calculation. Looks like this: (MaxLoss * (1 + Margin))*(1/DrawDown) = Capital needed per contract (5000*(1+0,25))*(1/0,15) = ~41600 MaxLoss: Biggest loss incurred on 1 contract during whatever backtested period (10 years for me on daily EOD). Margin: I used annual VIX as a reference (trading ES). It's just a safety margin on my max loss. DrawDown: What I consider an acceptable drawdown/loss. I guess this also heavily depends on what kind of system you'd be running. For my system, using max loss seemed like the best idea. I have thought of using max consecutive losses as well. Would love to get any kind of input on what you all think about it. I'd also like to see how others calculate minimum capital.