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Re: Risk of ruin, amount per trade formula?



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Al Taglavore writes:
> "...if you risk 33 % of your capital on each trade, if 
>  you have three losers in a row you are dead...."
> 
> Need to re-think that one, Jean Jacques.  In each trade 
> you are risking 1/3 of the remaining capital, not 1/3 of
> the original capital amount.

Still, doing this with 3 losers in a row leaves you with just over 30%
left, no?  That seems steep to me.

I'm less risk tolerant, however; many others mileage may vary.