Consecutive Losers & Expectations

[YachtFund]

I am working out my trade size dependant on the consecutive losers for a system. All so I dont lose more than %25 of my fund.

My question is, if I have back tested a system and over that period it has had 5 consecutive losers what multiple should I use to be sure that I dont lose more than %25 of my fund. I have read several books that say between 2-3 times. So in the previous example I should use say 13 as my expected consecutive losers.

Im curious how people calculate their consecutive losers.

Thanks

YF

 

[TWI]

Run monte carlo on results and see how many consecutive losers you have after many iterations. That will give you a good range.

 

[YachtFund]

Thanks twalker.