Saturday, February 10, 2007

I need a formula to calculate risk size. I know failure rate and profit% and time? -

example: 30,000 capital. 80% failure rate. when successful, 50% return. How would I calculate how much can be spent every day for 30days or how much to risk at 1x?

Risk is a moving target. It sounds like you re looking for an answer to a text-book question. Not having read that book, I can t give you it s specific answer. But... When you assess risk in the business world, it s always based on how much you can afford to lose. Seems to me that an 80% failure rate is a pretty sure way to lose your loot!Good luck,

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