%% I like Dr Van Tharp, XEla, for 2 or more reasons. [1st]I bought another trading book one time , a Chicago trader noted ''i discerned truth in his voice'' [2] Good points of his, in Jack Schwager Top Trader books , which is among the best; long story short................................................................................NOT a prediction.
Oh I see, in order to calculate that just find math expectations of both of your wins and losses. Assuming price is subject to normal distribution (although in some books it's claimed to resemble more t-distribution), we have 1/2 probability of price going up or down So for loss: 1/2*57+1/2*0=28.5 For winning trade: 1/2*57+1/4*57=42.75 E(win)/E(loss)=42.75/28.5=1.5 Correct me if I'm wrong.
[99%] %% Well, New2, good question. The turtles made millions low hit[win% ] rate, lots of leverage,large stops, but BIG % trending markets..................................................................... I like IBD founder William o Neil' s 250 page -, or updated 455/+ page book-system; risk 3%-8%- maybe gain 25%, stocks-cash markets. As far as people talking about risk 1%;most all those are trading leveraged , or limit UP, limit down markets big difference.Of course he started IBD+ bought a NYSE seat out of his trading profits; i noted yesterday he cut a loss twice on XRX, about 2% when it was almost $100.............................................................. BUT open stocks profits are trailed with stops >> 8%