How do you calculate break even stops into statistics?

Discussion in 'Trading' started by iamnewuser911, Oct 27, 2017.

  1. Is my win rate = Winning trades/Winning + Losing Trades? Or Winning trades/Winning + Losing + break even trades? More than 50% of the trades that I don't win are stopped out at break even.
     
  2. wlnd

    wlnd

    track both. it may be more meaningful tracking your winrate without breakeven trades, given the high % of BEs
     
    MarkBrown likes this.
  3. Ok so its high 60%s with break even trades calculated together it's around 50% win rate.
     
  4. ironchef

    ironchef

    Focus on win expectancy instead of win rate. Every transaction or trade should be counted if you look at expectancy:

    [(total profit)/(# of wins) + (total loss)/(# of losses) + (total BE)/(# of BE)]/[total capitals used)/(total # of trades)]

    Track this over time, or over any specific time period. if that # is positive, you have a winning method, otherwise go back to the drawing board. You can also compare the outcome to any benchmark to see if you are better or worst than a reference investment instrument. A good place to start is to compare your outcome to holding SP 500 index.

    More sophisticated traders also look at risk adjusted returns.

    Good luck.
     
    MarkBrown likes this.
  5. userque

    userque

    Which would be more meaningful?

    Suppose you made 100 trades and broke even on all of them. Would it be more meaningful for you to classify your win rate as 100%, or 0%.

    That said, I would not count break-evens as wins. While break-evens are not losses; they also are not wins.
     
    Last edited: Oct 27, 2017
  6. So
    How do you calculate break even stops into statistics?
     
  7. userque

    userque

    No need for large type. I answered the question in your post, not the heading to this thread. Standby for my response to the heading.
     
  8. userque

    userque

    I don't.
     
  9. tommcginnis

    tommcginnis

    You need a beer.

    W/total == win rate

    L/total == lose rate

    #/total == scratch rate.

    You can segregate your trades any way you want -- how 'bout BIGwin/total == Spank rate....

    Then you can work on balancing your Spank rate with your Scratch rate, to max(mentalmasturbation) :wtf:
     
    Overnight and userque like this.
  10. Sorry for making you feel very offended.
     
    #10     Oct 28, 2017
    wlnd likes this.