Date post: | 13-Aug-2015 |
Category: |
Economy & Finance |
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Volatility and Bet-sizing
David CooneyCEO, MahiFX
MahiFX is an online retail trading platform offering clients exceptionally competitive spreads and great customisable charting functionality.
David Cooney of MahiFX discusses how prudent bet-sizing can help mitigate your risk in the volatile Forex market.
About MahiFX
Agenda
• The theory on bet-sizing drawn from the science of gambler’s ruin
• The size of your bankroll and its effect on your profitability
• The table of margin to wealth• Questions
Gambler’s Ruin
The Science Behind the Game
A game of chance which can be considered to be a series of Bernoulli trials at which each player wins a specified sum of money for every success and loses another sum for every failure; play goes on until the initial capital is lost and the player is ruined.
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 790
5
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30
Bankroll 1
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 790
5
10
15
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30
Bankroll 10
Through the line
Game over!
End of the Line
Margin to Wealth
Questions?
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