In the sales mkt you already know which are the top 20% customers that will generate you those 80% profits...but for trading it's different...if the Pareto law explains the contribution of the top 20% winning trade to the 80% of the profits which will be an optimal scaling strategy since you don't know 'ex-ante' which are winning trades that will generate those profits?
As for me (I trade EOW, so it's based on weekly results): 62% of weeks account for 176% of profits (the other 38% are down weeks) 50% of weeks account for 171% of profits 38% of weeks account for 158% of profits 29% of weeks account for 139% of profits 22% of weeks account for 120% of profits 16% of weeks account for 100% of profits 5% of weeks account for 49% of profits So, eight weeks a year account for all my profits and two or three weeks account for half my profits. Now, if I only knew which weeks were which ahead of time.