1. Volatility and Bet-sizing
David Cooney
CEO, MahiFX

2. About MahiFX
MahiFX is an online retail trading platform offering
clients exceptionally competitive spreads and great
customisable charting functionality.
David Cooney of MahiFX discusses how prudent
bet-sizing can help mitigate your risk in the volatile
Forex market.

3. Agenda
• The theory on bet-sizing drawn from the
science of gambler’s ruin
• The size of your bankroll and its effect on your
profitability
• The table of margin to wealth
• Questions

4. Gambler’s Ruin
The Science Behind the Game
A game of chance which can be considered to be a
series of Bernoulli trials at which each player wins a
specified sum of money for every success and
loses another sum for every failure; play goes on
until the initial capital is lost and the player is ruined.

5. 30
Bankroll 1
25
20
15
10
5
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79

6. 30
Bankroll 10
25
20
15
10
5
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79

7. End of the Line
Through the line
Game over!

8. Margin to Wealth

9. Questions?
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