High % Risk and Compunding

[SpiritBeing]

It doesent fall apart at all, it just changes the original equations slightly; not difficult to extend the original case so that BE is included...

whats the equation including breakeven...can you share?.......:?:

 

[Scotty2Cues]

whats the equation including breakeven...can you share?.......:?:

the ones I've posted; by the original equations I just meant the case for a win or loss only (binomial)

 

[Hotch]

It doesent fall apart at all, it just changes the original equations SLIGHTLY

Makes a nice change.

 

[scose-no-doubt]

Shouldn't all this stuff be applied in retrospect to optimise a winning strategy rather than to attempt to build one?

 

[SpiritBeing]

Shouldn't all this stuff be applied in retrospect to optimise a winning strategy rather than to attempt to build one?

good point

 

[traderman1]

also if b = probability of getting SL to breakeven after so many pips and
s = probability of reaching take profit once SL moved to BE then
W = b*s
L = 1 - b
BE= b*(1-s)

and so we just need values for b and s

Can I offer b=bull and s= sh*t :cheesy:

 

[traderman1]

Shouldn't all this stuff be applied in retrospect to optimise a winning strategy rather than to attempt to build one?

What is the difference between building an optimised strategy compared to optimising a winning strategy?
A winning strategy simply may be a shorter term time period using the same parameters as a the optimised strategy.

An optimised strategy is a strategy built using long term back testing.
A winning strategy may be built in the shorter term but should also be subject to optimising to possibly improve its parameters