Use this math to find out how profitable your strategy is…

[edchristianaguinaldo]

I want to be calm like him when I grow up.

[RiteshYadav-dhwb]

Wonderful insights brother, you explained it so brilliantly but a small correction -That 21.5 is not the Risk but the collective Reward you get after subtracting the risk over 100 trades

[kxbow]

I've learnt a whole lot from you sensei💯

[brianmercer]

Came across a clever piece of maths (I'm based in the UK btw) which you may be interested in. From gambling theory there is an equation which gives you a potential losing streak based on strike rate. The equation is:
Log n/-log (1-sr/100).
Plugging in an expected sr of 45% over (n) 100 trades gives an expected losing sequence in ANY sequence of 100 trades as:
7.7
So. From a strategy perspective, if you cannot cope with a string of 8 losers in a row and stay faithful after a drawdown of $1600 on a $10000 account (16%) then perhaps this is not the game for you.
On the upside, 8 winners in a row is equally likely from a stats
Thanks Steven, I hope you can use this in your first rate videos

[YZR]

Mind sharing more about "reward ratio"? Like where do you get your 1.7 from? Thank you

[roikuris]

Please share the full video from which this short was created

[michaelgabrielcube]

Because of my focus on developing and refining my strategy, I dont normaly use the risk reward management thingy

[artist_]

(total 100 trades with 100$ acc size and risk per trade is "SL=1$").

45% win rate strategy with 1.7RR.

45×1.7= 76.5$ profit of capital.

>>now, count total loss (55%).
SL=1$ so 55% loss equals 55$.

>>total profit after 100 tradrs with 45% win rate >76.5$ - 55$=21.5$ profit.

-now you have 121.5$ acc size after 100 trades with 45% win rate and RR is 1.7 and SL is 1$.

[haramichael]

Steve the love I have for you ❤️
Is something else, , , 🎉
Because you don't hide anything and you're direct on point 👌

[SK-mrov]

I like to win, that’s leaving money on the table and decreasing confidence

[roikuris]

Delta x 2 or 0.02? Unless I am totally wrong I think the result needs to be multiplied by 0.02 (convert to %), not 2

[DailyChasing]

when I see a guru say they've never lost a trade, I instantly dip.

[hniederhausen]

So the 2% risk: Doe's it mean risking 2% of my depot as SL or am I placing a position worth of 2% of my depot?

[edenojiegiftprince]

Good day use a trailing stop system..so my risk to reward isn't when I take a trade my original thought is 1:3... sometimes I am at breakeven or stopped out in trailing system

[dino]

I had to watch this 5 times but now i understand, thanks

[ionelbenchea]

Where are you live? I wanna see you. You are the good trader.

[senior]

But there is something called optimising your strategy. Because as a human being we can't catch all these 100 opportunities which market gives us a potential trade signal. We gonna know this simple concept also.

[bagsnatcher]

Bro I watched all your vids thank you sooo much. My strat is a 68- 70% win. I wanna share it with you I learned soooo much from you and wanna give back reply to this and I’ll try to explain my strat

[babogoon]

Wrong number. Everytime you risk 1R, and reward is 0.21R. SO 100 TRADES WILL GIVE YOU 21R. NOT 42R.

[SandraHinn]

Correction: "professional YouTuber"