The Math of Winning

01/11/2021 24 min
The Math of Winning

Listen "The Math of Winning"

Episode Synopsis

Most traders think that their win percentage is the most important performance statistic of their trading. The relieving truth is this is not the case. In this episode we explore the subject of winning percentage in great detail and dispel all of the myths you might have been led to believe.
Mathematical Formulas:

WinRate = (WinningTrades ÷ TotalTrades) x 100
MinimumWin% = Risk ÷ (Risk + Reward) x 100
AverageGain = WinningTotal ÷ TotalWinningTrades
AverageLoss = LosingTotal ÷ TotalLosingTrades
Expectancy = ((1 + (AverageGain ÷ AverageLoss)) x WinRate) - 1

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Episode Links & Resources:

Original Blog Article
Jordan Peterson's Rat Lecture
Akil Stokes: Why I Prefer NOT To Win Big
Rayner Teo's Risk:Reward Article