Talk about the win rate and profitloss ratio

{}Posted in2023/2/26 2:48:10 | 6Browse

August 206 B.C. to early 202 B.C., the western Chu hegemon Xiang Yu, the king of Han Liu Bang two groups for power best forex rebate company a large-scale war, the h fxrebatecentraltory of this war called the Chu-Han battle, the results of the war ended with Liu Bangs victory, but throughout the war, Liu Bangs failure can be said to be far more than Xiang Yu, but his key nuclear under the battle of achieved victory, thus ultimately laying the foundation of the Han dynasty Why talk about this story, in the financial market, no one can always be in a cashback forexning position, and no one is said to be born with a bad star, whether it is the god of value investment Warren Buffett or financial predator Soros, in their legendary people have failed, but so far, they have been at the top of this industry Why? Win to more than lost but win more than there are two kinds: one is like Liu Bang kind, although the number of times to lose, but a game to win a special more, there is another is to win the number of times also more, occasionally lose and lose is not much, but the final result is still win which involves an important point is to trade on the win rate and profit and forexrebatecommission bestforexrebatecompany, today to talk about the win rate and profit and loss ratio of things [text] win rate win rate = profit of all The number of times/total trading sessions x 100% =a(1>=a>=0) about the win rate, I believe that investors hope that each of their own transactions can be profitable, in the profit-loss ratio of 1:1 conditions, the higher the investors win rate, the more gains gained profit-loss ratio profit-loss ratio = the average amount of profit / average amount of loss = b (b is a constant greater than 0) but in Foreign exchange trading, the win rate is not the only determining factor, there is a profit and loss ratio of the existence of foreign exchange trading in each profit and loss of money will always be changing, may be this time to win 30 points, the next time to win 50 points, and then the next time to lose 80 points total profit and loss total profit and loss = all the times of profit * the average amount of profit all the times of loss * the average amount of loss assuming that the average amount of loss is 1, then from the above Three formulas can be derived from the total profit and loss of the mathematical expectation = total number of times * (ab + a - 1) in the chart, the win rate is the vertical coordinate, the profit and loss ratio is the horizontal coordinate, there is an optimal win rate and profit and loss ratio, so as to maximize profitability For example (without regard to transaction costs) assume that a foreign exchange trader a year of trading records are as follows: the total number of times 300 profit all times & nbsp;91 all times of losses 209 average amount of profits 30 average amount of losses 8 total profit and loss = all times of profits * average amount of profits –all times of losses* Average amount of losses=91*30-209*8=1058Win ratio=all times profitable/total times*100% =91/30*100%=30.33%Profit/loss ratio=average amount of profits/average amount of losses =30/8=3.75 What is obvious to see Yes, the traders win rate is only 30.33%, but because of the large profit/loss ratio, his total profit/loss is still profitable Look at another example: the total number of times remains the same, the number of profits and the number of losses are switched, the average amount of profits and the average amount of losses are switched the total number of times 300 all times of profits 209 all times of losses ;91 times the average amount of profit 8 the average amount of loss 30 total profit and loss = all times of profit * average amount of profit - all times of loss * average amount of loss = 209 * 8 - 91 * 30 = -1058 win ratio = all times of profit / total times * 100% =209/300* 100%=69.67% Profit-loss ratio=average amount of profit/average amount of loss =8/30=0.27 What can be seen is that even if the win ratio is as high as 69.67%, if the profit-loss ratio is low, then you end up with a loss No one can guarantee a high win ratio all the time Although the frequency of profitability is acted as a form of probability statistics through The win rate, but it is only a regression value of past data testing of course, based on the concept of expectations, where the importance of the past on the future reference to irrational expectations is also an important form of expectations, but the market changes quickly, the same strategy in different time periods will have different trading results for the market in the past, the strategy may not work for the future, and with the increasing number of new impact factors, in the long term The more time you have, the more orders you trade, the closer your profitability will be to the winning rate, but it is not sustainable in the long run, and even changes have occurred. The United States first-class trading system design and application of experts Bruce in 1975 began to engage in trading, and in 1976 entered the field of research and design of trading systems, he once said, in terms of professional traders, the percentage of profitable transactions are often less than 40% even professional traders are difficult to achieve a high win rate, let alone ordinary investors and in foreign exchange trading, the win rate is certainly very important If you can have a high win rate, then the chances of making money are naturally high, but the market is complex and volatile, no technical system can guarantee that it will always apply to spend too much energy on improving the win rate, may have little effect on improving the profit-loss ratio is the key to profitability in the reality of trading, the win rate is an important aspect, but improve the profit-loss ratio is the key to profitability investors will be deducted for each single transaction A transaction fee from the point of view of the throw of the dice, even if the probability of winning at 50%, every 100 transactions in which there are 50 times a profit, 50 transactions are a loss, the profit-loss ratio is 1:1, then, week after week trading, investment funds are always in a decreasing negative sum of the game the more the number of transactions, the faster the loss of funds from the profit-loss ratio formula, you can find ways to improve the profit-loss ratio The first way to do these two points is to increase the profit of each transaction and reduce the loss of each transaction. In this method, the investor can hardly control the profit, but can control the maximum loss of each transaction, which is often called the stop loss. However, although the magnitude of profit is difficult to control, but the size of the position when profit and loss is controllable, here comes the second method to improve the profit and loss ratio position management reduce the position of loss, increase the position of profit, also can improve the profit and loss ratio but the profit and loss ratio is a lagging indicator, you need to do a lot of transactions after the statistics. Entry is difficult to guide through the profit and loss ratio, and mandatory set profit and loss ratio may be profit into loss, may also step short of the market Therefore, investors in the transaction should develop a good plan, according to the plan after the profit, you can set the cost line mandatory exit point, which can at least ensure that no loss in the premise of ensuring the floating profit space can moderate the profit to take a larger market, to expand the profit and loss ratio, in the long run, the profit Space will also increase day by day TIPS1: Please stop loss in time to control the risk within a small range2: Please enlarge the profit3: Please insist on using a fixed percentage of the total funds at the moment (such as 3% to 5%) to control losses4: Please insist on using a fixed percentage of the total funds at the moment (such as 9%) to obtain considerable profits, the specific profit and loss ratio varies from person to person

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