[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

Re: Math Question Challenge...Simple Solution


  • To: omega-list@xxxxxxxxxx
  • Subject: Re: Math Question Challenge...Simple Solution
  • From: "Andy Dunn" <andy@xxxxxxxx>
  • Date: Mon, 21 Dec 1998 23:02:20 -0500 (EST)
  • In-reply-to: <199812162148.NAA04265@xxxxxxxxxxxxxx>

PureBytes Links

Trading Reference Links

A math friend sent me this simple answer to the math question

AVG WIN:LOSS = 2:1
WIN % = 50%

How do you calculate yearly return depending on "how many trades per year"

Take the number of trades...let's take 100


50 winners win 2% = 100
50 losers lose 1% = 50

100-50

= 50%

---

take 30

15 winners x 2% = 30
15 losers x 1% = 15

= 15 %

----

take 2 trades

1 winner at 2% = 2%
1 loser at 1 % = 1%

=1%