brain fart

Discussion in 'Trading' started by ROCK SOLID, Mar 5, 2003.

  1. This is a stupid question, I know. However, I still need the answer. :eek:

    Say there are 4 trades:

    winner
    break even
    loser
    break even

    How do you treat break even trades when calculating win % and loss %?

    For example, is my win rate 50% or 25%??

    Is the answer, my win rate is 25% and my loss rate is 25%?

    ROCK
     
  2. dbphoenix

    dbphoenix

    If your "breakeven" trades do not include commissions, then they're losers. However, if you include enough leeway to cover commissions and breakeven is truly breakeven, then you'd be justified in not including them at all, except in a separate category, as with advancers, decliners, and unchanged.

    --Db
     
  3. Counts B/E trades as winners - which can skew results. They should be considered losing trades since slippage and commissions are an unfortunate reality.
     
  4. When you go to bat and get walked, does it affect your batting average? NO. I don't count scratch trades in my stats, but I do track them seperately.
     
  5. Cheese

    Cheese

    All trades you close should be counted if you compile and keep a record of your trading average, eg YM points gained per contract or per $.
     
  6. Pekelo

    Pekelo

    This is actually a pretty good question. I would say your average is 50%, because if we don't count the breakeven that it is, and if we count, I would count them as half winners-half losers.
     
  7. Suggest considering all trades which are +/- 2 or 3 points (or whatever size you like) as "scratches"... only count as winners and losers those outside your scratch range.
     
  8. Cheese

    Cheese

    OK, say, 3 trade execution outcomes:
    win
    wash &
    lose.

    Let those outcomes be considered for day trading (eg YM).
    If you produce an accurate methodology, then validate it with infinitesimal checking and then actual test trading. Next, play. And play the whole trading day menu.
    Concentrate on the day 'win' which you should always achieve.
    Always take your signals even if your execution is lacking a little. Don't let washes or minor losses matter. They don't. You have to be an unfailing 'machine' day winner, every day
    :)