Thanks for all who have contributed to the work here. This work will help me to build up my overall money management strategy.
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Simple Mathematics (Try Now) 89 replies
Psychology, Mathematics and Numerology 21 replies
Mathematics of Money Management 1 reply
DislikedThanks for all who have contributed to the work here. This work will help me to build up my overall money management strategy.Ignored
DislikedI just wonder how you can apply the method into money management strategy because the RRR hardly equal to one in real application. Pls enlighten me if you dont mind.Ignored
DislikedThe question is ambiguous, do you mean...
1) Having a draw down of size 10 during the 30 trials (10 consecutive losses).
2) Having a total of 10 losses during 30 trials.
3) Having his capital go lower than -10 during 30 trails.
Regardless of which it is, here (http://mathworld.wolfram.com/RandomW...mensional.html) is probably a good start.Ignored
DislikedFirst, we would need to know the desired confidence level. If desired confindence was 99%, then:
n= log(1-.99) / log(1-.000105)= 43,856
it would take 43,856 tades for him to be 99% confident that he would hit a string of 10 losers in a row (at .4 prob of loss). No way to know if he would start that string on trade #1 or trade # 30,000 or trade # whatever. I am not sure that is what he is asking.... the question was a little unclear. Also very theoretical, because he does not have a system that can produce a win rate of 60 % over that number...Ignored