Risk of ruin, amount per trade formula?

[Mike Campbell <ug@xxxxxxxxxxxx>]

Some time ago I saw a formula that spit out the amount of capital (as
a percentage) that you should devote to any given trade based on the
number of wins, number of losses, average dollars made per win, and
average dollars lost per loss.

The theory being that if you devoted LESS than this per trade, you
were not making as much as you could, and if you devoted MORE than
this per trade, your risk/reward ratio went up (increased risk of
ruin).

Anyone have this formula handy?  I'm trying to comparea couple
different systems to each other and while this formula may or may not
be what I use to determine how much to put into a trade, it seems
useful for comparison purposes.

Thanks in advance,



Mike