Quote:
Originally posted by TrendlineBreak
Find a system that wins you half the time, win 2 for every 1 you lose
Don't understand ?
I read this as saying find a system that wins 50% of the time then use it to win 66% of the time.
eh ?
|
Sorry for the confusion. What I mean is that if you have a system that works half the time but your win:lose ratio is 2:1, you will wind up a winner. So if you lose 40 pips for every 80 pips gain, over 100 trades, you will lose 2000 pips but win 4000 pips. That is a 2000 pips profit. Assuming that you are playing £10 per pip, that is £20,000 profit. If your risk capital is 20,000, utilising 40 pip stop loss will cost you only cost you 2% per trade. If you do 100 trades a year and win 50% of the time, you will end up with 100% profit per year.
I say this is achievable for a disciplined trader. If not, why not?