DiscoverThe Art of TradingThe Math of Winning
The Math of Winning

The Math of Winning

Update: 2021-11-011
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Description

Most traders think that their win percentage is the most important performance statistic of their trading. The relieving truth is this is not the case. In this episode we explore the subject of winning percentage in great detail and dispel all of the myths you might have been led to believe.


Mathematical Formulas:



  • WinRate = (WinningTrades ÷ TotalTrades) x 100

  • MinimumWin% = Risk ÷ (Risk + Reward) x 100

  • AverageGain = WinningTotal ÷ TotalWinningTrades

  • AverageLoss = LosingTotal ÷ TotalLosingTrades

  • Expectancy = ((1 + (AverageGain ÷ AverageLoss)) x WinRate) - 1


Zen & The Art of Trading:



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The Math of Winning

The Math of Winning

Matthew J. Slabosz