Expected Win/Loss ratios

Discussion in 'Options' started by RunTrade, Nov 4, 2005.

  1. This is a great tool, because it makes you focus on your setups and wait for the optimal time(s) to take a trade (recording the information like this makes the trader accountable).

    I plan on using it in my trading.

    Thank you very much.

    Sincerely,

    Jimmy
     
    #11     Nov 4, 2005
  2. smallfil

    smallfil

    RunTrade,

    I am not a hyper trader and have just 13 options trades since,
    May 2005. Good that I keep a trading journal so, I can track my errors as well as my win/loss ratio. So far, 7 winners, 5 losers and 1 even (should have been a winner but, I allowed the gains to vanish). My win/loss ratio is slightly over 3 to 1. Most experts suggest having atleast, a 2 to 1 win/loss ratio and Price Headley claims in his dvd that his ratio is 6 to 1.
    It is not about how many winners but, when you win----you want to win big and when you lose----you want to lose a little.
    So, the win/loss ratio does matter a lot in my opinion.
     
    #12     Nov 8, 2005