How to increase your account by a factor of 1,000. - page 7

 
So what is the result now?
 
Aleksey Mavrin:

Most of all, however, also depends on the "correct" entry.

By entering correctly we can shift this probability only to a small extent, perhaps as low as 5%. Otherwise, earnings in the financial markets would be much more real than they are. But by the SL/TP ratio we can vary the probability from 1e-10 to 0.999999999999

 
Grigori.S.B:

By entering correctly we can shift this probability only slightly, perhaps as low as 5%. Otherwise, it would be much more realistic to make money in the financial markets than it is. But by the SL/TP ratio we can vary the probability from 1e-10 to 0.999999999999

5 is of course very rough, but I agree with the gist. BUT. We are not interested in variants of increasing the probability of profitability of one trade by the ratio of SL/TP starting from some moment, because we need what? Exactly - to change the ratio of the lot volume to deposit in the direction of increasing the deposit to infinity) And we have the opposite task from the beginning. That's why I say we should take a little more from the Stop, it's a little more to compensate for the cost and level of stop out. Plus or minus it allows us to get by with 10 trades of va-bank. Do you agree?

 
Aleksey Mavrin:

5 very rough of course, but I agree with the gist of it. BUT. We are not interested in variants of increasing possibility of profitability of one trade by SL/TP ratio, starting from some moment, because what do we need for that? Exactly - to change the ratio of the lot volume to deposit in the direction of increasing the deposit to infinity) And we have the opposite task from the beginning. That's why I say we should take a little more from the Stop, it's a little more to compensate for the cost and level of stop out. Plus or minus this allows us to get by with 10 trades of va-bank. Do you agree?

This is all true. But such extreme trading is doomed in the long term and will lead to deterministic bankruptcy. In order to increase one account 1000-fold we would need to drain more than 1000 accounts. I mean statistically significant result because if one wins the lottery it does not mean that it can become a source of stable income.

 
Grigori.S.B:

All this is true. But no matter how you look at it, such extreme trading is doomed in the long run and will lead to deterministic ruin , because in order to increase one account 1000-fold you will have to drain more than 1000 accounts. I mean statistically significant result because if one wins the lottery it does not mean that it can become a source of stable income.

That's not a fact. And you can calculate it accurately, if you assume the probability of error. For example, the error rate is 0.2. i.e. in 80% of cases the person doubles. Average number of plums to a series of 10 doubles, I think that less than 1000 is much :) I'll calculate it later.

Another thing is that this error % depends entirely on experience and skill and of course luck, and it can only be presumed, or found out post factum, looking at your Lamborghini in Nice or at a factory gate in Mukhosransk))

 
Aleksey Mavrin:

5 very rough of course, but I agree with the gist of it. BUT. We are not interested in variants of increasing possibility of profitability of one deal by SL/TP ratio, starting from some point, because we need what? Right - to change also the ratio of volume of lot to deposit towards increasing of deposit to infinity) And we have an opposite task from the beginning. That's why I say we should take a little more from the Stop, it's a little more to compensate for the cost and level of stop out. Plus or minus it allows us to get by with 10 trades of va-bank. Do you agree ?

as long as inputs 'from the chatterbox' are considered,

The profitability of a trade does NOT change with SL/TP ratios. It slightly increases with increasing SL+TP relative to spread (constant guaranteed loss).

Of course, with a short take, of course the probability of a minuscule profit is higher than the probability of a large loss. But in a series of trades the stop will be guaranteed to be caught and will overlap previous takeovers.

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From the classic problem of losing a gambler: which stakes are better - large or small, if the probabilities are not in our favor, but we want to increase the capital. So large is better and their optimal size can be calculated. (The wording is not exact, go to the sources for the exact wording).

 
Maxim Kuznetsov:

As long as the inputs "from nothing" are considered,

The profitability of the trade does NOT change from the SL/TP ratio. It slightly increases as SL+TP increases relative to the spread (constant guaranteed loss).

Of course, with a short take, of course the probability of a minuscule profit is higher than the probability of a large loss. But in a series of trades the stop will be guaranteed to be caught and will overlap previous takeovers.

---

From the classic problem of losing a gambler: which stakes are better - large or small, if the probabilities are not in our favor, but we want to increase the capital. So large is better and their optimal size can be calculated. (The wording is not exact, for exact ones look for sources).

1. "Guaranteed" - there is no such word) It cannot be stated that way. For example Stop 0,00 at Eurobucks - guaranteed NOT to be caught?, you see) Grigory only meant it - that somehow the ratio regulates p, and the dependence there is not simple linear.

And I meant it taking into account that the trader must have a probability in his favor, otherwise it's not trading but betting.

In general I agree.

 
Aleksey Mavrin:

1000 times is 10 trades x2, in a year I think you can find 10 opportunities when you're really sure and find an entry so that the stop is slightly less than the take.

I was thinking the same thing. It's just unlikely to be achievable. My aim is not to risk 4 times the deposit amount, my profit should be 25 pips + spread. Technically it is possible to find 10 such deals during a year. In theory. But in real life no. Psychology interferes and besides you need to have super endurance. You need to sit near the terminal from morning till night all the same, and besides responsibility grows with each deal. Imagine the first deal is easy to make, you have no responsibility. But after another month the second one will be much harder to make. You realize that under an unfavorable scenario, two months of sitting at the monitor in vain. And to come to the same result starting all over again another two months will pass. And it is already four months lost. And imagine this is the fifth or 10th trade. In the tester the quotes are flying fast.

 
MrBobr1:

Risking as much as 400% of your capital in a trade,

How is it possible to risk more money than you have?

 
Grigori.S.B:

How is it possible to risk more money than you have?

Leverage of 1:200 and up to 1:1,000

Reason: