You must be so desperate want to find out the answer such that you have asked the same question for so many times ? Losing too much money in the market with your day trade ?? You even use your another duplicate fake ID (the ID that has 5 post and only registered in less than 2 months in ET) to ask the same question. LOL Why should I share the knowledge with someone like you ? You are using the wrong approach to ask for advice. Please continue to listen to those fake guru that teach the same BS things to trade, and continue to lose money. Merry Christmas.
This make my day. What do you think how most small ET trader here trade their forex (and loss all their money) or market indices with $2K account ?
I'd just like the answer to why I'm wrong please. You made me out to be a simple minded idiot but the math works when I run it. Please enlighten.
@algofy , If I were to speculate on @galvinlee888 's response, it's that he knows the math works, but implied that the conclusion drawn is insufficient for profitability, being based on several assumptions. 1. That any amount of consistency as stable as a winrate is possible, or meaningful. Per that winrate, a system could produce 1000 wins after 9000 losses and still be true, but will the deposit survive the losses? Basically, such ideology relies on the ability to see an infinite number of trades to realize the theoretical winrate. But, variance will kill any portfolio before that happens. 2. Understating the effect of commissions and slippage on such a system. If it's a frequent system with small targets, you pay more in commissions. If it's a slower system with large targets, it is difficult to realize the theoretical winrate, as you can't be too sure if you're doing something wrong or just don't have enough datapoints over a long timeframe. Variance, again. 3. (Speculative) Obviously based on "edge," but efficient market hypothesis would hold that the expectancy of random play would be 0, and that your hypothetical winrate with that risk/reward ratio is so astronomically impressive that it's nigh impossible and not a hypothetical worth discussing, as you'd probably already be a billionaire if you actually had that ability. Might as well also discuss a 99% winrate with a 100:1 reward.