Money Managment

The Expectancy Formula :
(Avg$Win x Win Rate) - (Avg $Loss x Loss Rate) = Expectancy

Been thinking about discretionary accounts with 100k,

• Average Dollar Win
• Win Rate
• Average Dollar Loss
• Loss Rate
• Maximum Drawdown
• Maximum Positive Return
• Maximum Consecutive Wins
• Maximum Consecutive Losses
• Average Number of Consecutive Wins
• Average Number of Consecutive Losses
• Standard Deviation of Monthly Returns.
• Average annual return

So taking Ray Barros principle,

I accept a 3% as my maximum risk. If my avg number of consecutive losses is 3 and the average loss is 1%. I can now estimate that the objective maximum percentage loss.
I multiply my maximum number of consecutive losses by 3. So now the number is 9. So my possible worst case drawdown on average would be a 9 x 1% = 9%. I then multiply the standard deviation of monthly returns by 3. Let’s say that comes out at 27%. I now have the boundaries for my worst case scenario: 9% to 27%.