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Is anyone actually making money?


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Is anyone actually making money?

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  #361 (permalink)
Bubba1
Wichita Kansas USA
 
 
Posts: 32 since Feb 2016
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Do not forget a VERY important variable and that is when trades are closed, then have the average winner be bigger than the average loser.

They told me in the SP500 pit in Chicago to not eat like a bird and poop like an elephant.

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  #362 (permalink)
 Joseph Connors 
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Absolutely! The average winner versus average loser is vitally important and is a component of the expectancy calculation.



Bubba1 View Post
Do not forget a VERY important variable and that is when trades are closed, then have the average winner be bigger than the average loser.

They told me in the SP500 pit in Chicago to not eat like a bird and poop like an elephant.


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  #363 (permalink)
 SMCJB 
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Bubba1 View Post
Do not forget a VERY important variable and that is when trades are closed, then have the average winner be bigger than the average loser.

They told me in the SP500 pit in Chicago to not eat like a bird and poop like an elephant.

Again this is a meaningless statistic without win/loss ratio. @kevinkdog did a great video on trading stats a couple of weeks ago which included this great chart, which illustrates nicely the relationship between Risk Reward (which is also average win/average loss) and Win%. You can't talk about one of those without the other!.



Full link to the video. (Its the website not me making it so large!) Kevin does a great job talking about trade statistics using the 30 odd systems he trades as an example.


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