The Math of Winning

The Math of Winning

Most traders think that their win percentage is the most important performance statistic of their trading. The relieving truth is this is not the case. In this episode we explore the subject of winning percentage in great detail.

Show notes

Most traders think that their win percentage is the most important performance statistic of their trading. The relieving truth is this is not the case. In this episode we explore the subject of winning percentage in great detail and dispel all of the myths you might have been led to believe.

Mathematical Formulas:

  • WinRate = (WinningTrades ÷ TotalTrades) x 100
  • MinimumWin% = Risk ÷ (Risk + Reward) x 100
  • AverageGain = WinningTotal ÷ TotalWinningTrades
  • AverageLoss = LosingTotal ÷ TotalLosingTrades
  • Expectancy = ((1 + (AverageGain ÷ AverageLoss)) x WinRate) - 1

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Hosts


Guests

Matthew J. Slabosz

Matthew J. Slabosz

Matthew J. Slabosz is a full-time retail trader from Australia. He writes for the trading blog Zen & The Art of Trading, runs the YouTube channel The Art of Trading, and mentors students on how to write their own trading scripts at the Pine Script Mastery course website. He is now also the proud host of The Art of Trading Podcast. You can find more information about him at www.theartoftrading.com

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