Here's a list of numbers representing cumulative profit of a system (last number = most recent). The position size used to generate this list was a fixed $ amount.
How can Excel be used to determine the optimal position size for the next trade you're thinking of taking? Assume a working capital of 10k.
1292.04 (big win)
874.41 (big draw down)
I'm thinking of a formula something like this:
In cell B3 I have: =if(A2>A1,A3*1.5,0.5*A3) and dragged this down.
Now, not sure of my next move.