V.15:14 (658): Product Review: Risk Of Ruin by John Sweeney

Risk of Ruin (Financial Trading Inc.). Simulation software to estimate risk of ruin. by John Sweeney

Of the techniques available to help traders with money management, risk of ruin is one of the oldest. It’s meant to determine your chances of tapping out after a series of trades, assuming you’ll limit your losses on any one trade to a specific amount. Luis Sanchez of Caracas, Venezuela, in cooperation with Financial Trading Inc., offers a handy utility to test your system’s behavior. The program, straightforwardly called Risk of Ruin, tests your system on randomly generated data to determine the probability of your capital drying up. You open Risk of Ruin through Microsoft Excel spreadsheet software, either from the floppy on which it comes or from your hard disk to which you’ve copied it. Then you insert four numbers: ...