Actually, it's a little worse than this unless he'd be increasing the size of his bet after the two losses.
even if you employed a minimum 2-1 win/loss ratio wouldn't you end up with a P+L that looked something like this... 100 trades 100 share lots 2 point per winner 1 point per loser 33 winners X 2 points = $6600 67 losers x 1 point = $6700 -------- -100 Obviously no comm factored in
=========================== Some could disagree with random defined as 33% probability of trade sucess . 33% could be exceedingly profitable. FRED may not be so profitable in a polar bear trend. FRED may trend on up in an uptrend but i saw a caged bear on video draw plenty of red human blood as measured by ''any indicator''. Good points including word ''WORK''.!!! === Love learning -Solomon trader king,part time gold miner king.
in addition, odd. please provide me with each of your trades, i will take the opposite side and by default have a 67% win ratio.
90% is achieveable with unlimited drawndown. I think that is what you are doing, mrmarket. If you used a simple stochastics crossover method with 100k and 1 contract, with no stops, your win rate will be very high. What the effiecency of your strategy?
The market has 3 components, not two. Are you sure taking the opposite sides of my trades would give you a 67% win rate? No, it would give you a 33% win rate as well.