var and risk capital

[chitrader]

is a 500,000 var realistic with 2,000,000 profit targit? (20% of 10,000,000 capital)?

 

[jamescummins]

Totally depends how you are measuring you VaR... Need more info on what measure you are using to determine your value at risk...

 

[chitrader]

i guess a 1 day var with 95%
but its really not a math question, rahter a question like
"what do you need, how much cap you need, how much var and what kinda return can you make?
funds usually want a 20%return on capital
==>10,000,000 cap with 20% return is 2,000,000 then a var of 500,000 is realistic (4:1)???