Recent content by Edina

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    The effect of compounding

    Thanks again cbrads. So how is the 1.004 ratio applied please?
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    The effect of compounding

    It's not a binary bet. A loss doesn't need to be 100% as far as I am aware. If a trade is placed for $1000 and it is closed at $950 then I am calling it a loss.
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    The effect of compounding

    Thanks for your response malaguti, despite the patronising tone. You are not comparing like for like. You are comparing on one hand a situation where the losses are the 100% of the entire stake, but he wins are just 0.5% of the stake.
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    The effect of compounding

    Thanks very much cbrads. I am sure it does but unfortunately I'm not clever enough to work it out! What I am thinking is, before compounding if you risk 1% and make 0.5% on that trade then that is a profit of 0.005%. So if you do that 2000 times a year then on a crude measure that is 2000 x...
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    The effect of compounding

    Hi there, I was wondering if anyone knew how to calculate the effect of compounding on a trading system's results. I have been working on a system for a number of years, the returns are unspectacular but very consistent. On average it generates 8 trades a day with a success rate of just under...
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