Hi Raptor !
How I obtained the winning % is like this:
100% - (5/5+1) = 17%
100%- (4/(4+1) = 20% etc.
Is this correct ?
Thanks :)
if you mean the BE WR, you use this Risk / (Risk + Reward)
So Risk = 1 Reward = 5 BE WR = 1 / ( 1 + 5 ) = 1 / 6 = 16.6%
Your calculations are correct but coming from the opposite direction to mine . . .
if you mean the BE WR, you use this Risk / (Risk + Reward)
So Risk = 1 Reward = 5 BE WR = 1 / ( 1 + 5 ) = 1 / 6 = 16.6%
Your calculations are correct but coming from the opposite direction to mine . . .
Yes, 100%...I just used the other way around. You using Risk first and then dividing it where as I used Reward.
Reward = $50
Risk = $10
So the BE Win Rate would be:
Risk / (Risk + Reward) = $10 / $60 = 16.67% (or 17% when rounded off)
or Reward / (Risk + Reward) = $50 / $60 = 83.33%, then subtract this from 100%, when get 16.67%
This also means, from 25 trades, only 4 trades (round off to 5) needs to be profitable to breakeven.
17% of 25 = 4.25
Yes, 100%...I just used the other way around. You using Risk first and then dividing it where as I used Reward.
Yes, mathematics really help in this case, if we have a streak of losses. But practically, while trading, I cannot imagine how it will work.
This also means, from 25 trades, only 4 trades (round off to 5) needs to be profitable to breakeven.
17% of 25 = 4.25
5 trades needed not 4.
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Hi Raptor !
Here are my calculations, which show the "MUST" Win Rate for the following RR (I have disregarded the spreads for the sake of simplicity):
How I obtained the winning % is like this:
100% - (5/5+1) = 17%
100%- (4/(4+1) = 20% etc.
Is this correct ?
Thanks :)