The Art of Trading

The Math of Winning

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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

    • Zen & The Art of Trading:

    • Courses & Free Content!

      • Episode Links & Resources:

      • Original Blog Article
      • Jordan Peterson's Rat Lecture
      • Akil Stokes: Why I Prefer NOT To Win Big
      • Rayner Teo's Risk:Reward Article
        • ...more
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        The Art of TradingBy Matthew J. Slabosz
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