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> >> AccountRisk = NetProfit * RiskPercent;
> >> Num = AccountRisk / WorstCase;
> >> If Num < 1 then Num = 1;
>
> You summed up my confusion exactly when you said that the worst
> case loss is per contract, not for the entire trade. Look at the above
> code. If Num relies on the WorstCase value, and the WorstCase
> value relies on Num, then how could you code this scenario?
No, WorstCase doesn't rely on Num. WorstCase is the worst-case loss
PER CONTRACT.
Let's say you have a NetProfit of $100k, a RiskPercent of 3%, and a
worst-case per-contract loss of $500. Then:
AccountRisk = $100k * 3% = $3000
So you can risk $3k on one trade.
Num = $3000 / $500 = 6
Given a $500/contract worst loss, you can trade 6 contracts.
Does that help?
Gary
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