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Originally Posted by question
That logic is flawed. You will get stopped out more often than not (with tight stops) and thus your win ratio will not be 50-50%
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What is a tight stop ??? 1 pip 30 pips 100 pips ? Its all relative. A system is deemed to have a 50:50 win loss ratio (based on certain backtesting criteria) means that it will get stopped out just as often as it wins. That's why it's 50:50. Whether one thinks the stop is tight or loose is irrelevant.
Alternatively, in a 50:50 system, to breakeven one has an equal chance of getting stopped out as be in a winning trade. The $ breakeven point is when the winnings ($) = stop loss size ($)
I hope it makes sense
