Not enough information. What is "daily movement"? Breaking the prior day's high or low? Reaching a specific level? Closing higher or lower? For any of these situations, how much counter movement (i.e., stop loss) must you allow to achieve this 55% win rate? And how much of a profit are you trying to achieve?
This is the only post that the OP needs to read. The rest is complete garbage. Seriously, complete garbage.
Where is the analysis of impact of drawdowns, variance reduction (central limit theorem), and probability of ruin? Analysis of average , and variables in it, is not enough and is actually a relatively trivial exercise.
He must learn to walk before he flies. Anyway, please provide the analysis you suggested. I thought his problem was more fundamental than variance analysis. By the way, you think that analysis of averages is a trvial exercise but you be amazed how many are not aware of its consequences. Obviously, someone who comes along and asks "hi guys, I have a 55% win rate, how can I make money?" has some basic ground to cover.
Intradaybill: I think you are knowledgeable, and I agree with what your wrote. I think I read a post where you may have wrote something like you are a hair dresser. If you are a meaning it in literal sense, that I think you are able to do more things than just hair dressing. If you however mean that you give people hair cuts in markets, then that is a different story.
I believe the OP may have to consider the percentage of his account he plans to risk. With such a low W/L ratio, a large percentage of the losses up front will wipe out his account. Here's a screenshot of a Monte Carlo study that may demonstrate the importance of the Risk/Reward ratio and account risk with your Win ratio. Initial account Balance: $10,000 Account risk per trade: 3.00% Risk/Reward ratio: 2:1 Win/Loss: 51/49 =>55%wins No. of Trades: 250(1year of trading) Final account Balance: $398,104 Note: no consideration of slippage, commisions, etc.
Trade anything that highly correlates with the SPY. Leveraged ETF's will give you more bang for the buck.
It's as simple as that! You can do well with less than a 50% win ratio if your $ gain to loss ratio is good.