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Old 04-19-2008, 03:37 AM
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Join Date: Apr 2008
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Default Example for trading system

Hi, Dave!
I can't understand something about percentage of the trading system that you mentioned in the lesson "47. Why Position Sizing is So Important in Trading". I see the things this way: 60% are the profits and the 40% are the losses from the account for that trade. Or may be 60% is the amount of the account that we should invest. I don't understand this very good. Would you explain that, please?
Thank you!
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Old 04-21-2008, 10:49 AM
David Waring's Avatar
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Join Date: Nov 2007
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Hi Mista_kei,

In this particular lesson I am talking about the win to loss rate. So in other words if I have a system that has 6 profitable trades and 4 unprofitable trades this system has a win rate of 60% and a loss rate of 40%.

Let me know if that does not make sense.

Best Regards,
Dave
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