Easy 10% per month profits, 3

...continuation of discussion about Trade Your Way to Financial Freedom

Using Van Tharp’s assumption of risking only 1% on each trade and making 20 trades per month with a system having an Expectancy of 0.60, here’s my calculation of the results assuming further that the account size is $100,000.

According to my calculations, if you have a random system where your average win is 2.2 times the size of your average loss, then you would have an Expectancy of 0.60. I’ve seen many such systems so that part is plausible. With that Expectancy, after 20 trades, you can expect 12% profits on your $100,000!

 

Somehow, the Table showing my calculations is far, far down this page with lots of blank space. You'll have to scroll down to see it. Tech support can't seem to figure out how to delete the blank space!

Av Win	% Win	Av Loss	% Loss	Exp	Trades	Net Profit	Profit/$100,000
15,000	10	1,000	90	0.60	20	12,000	0.12
7,000	20	1,000	80	0.60	20	12.000	0.12
4,320	30	1,000	70	0.60	20	11,920	0.12
3,000	40	1,000	60	0.60	20	12,000	0.12
2,200	50	1,000	50	0.60	20	12,000	0.12
1,670	60	1,000	40	0.60	20	12,040	0.12
1,280	70	1,000	30	0.60	20	11,920	0.12
1,000	80	1,000	20	0.60	20	12,000	0.12
780	90	1,000	10	0.60	20	12,040	0.12

...continued tomorrow...

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