# Win/loss ratio



## It's Snake Pliskin (6 September 2006)

I would like to hear what factor (singular) contributes most to the ratio. Is it debatable?


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## It's Snake Pliskin (8 September 2006)

*Re: Win/loss ratio -*



			
				Snake Pliskin said:
			
		

> I would like to hear what factor (singular) contributes most to the ratio. Is it debatable?




My stab: a low number of very small losses. Suggesting it should be better than 50/50 - time. Wins better than 3x.


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## yogi-in-oz (29 September 2006)

*Re: Win/loss ratio -*



That's easy ..... picking potential winners, Snake !~!

...... and simply, the more experienced and proficient
we get at picking winners, the better our win/loss ratio
and the more profits we get to keep ..... 

have a great weekend

  yogi


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## coyotte (29 September 2006)

Tend to find Nick Radge is spot on :

Forget about the Win% and concerntrate on Profit/Loss %



Cheers


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## It's Snake Pliskin (29 September 2006)

*Re: Win/loss ratio -*



			
				yogi-in-oz said:
			
		

> That's easy ..... picking potential winners, Snake !~!
> 
> ...... and simply, the more experienced and proficient
> we get at picking winners, the better our win/loss ratio
> ...




Yogi,

Thanks for your delayed response to the thread. 

So your answer is "picking potential winners"

Have a good weekend.  
Snake


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## It's Snake Pliskin (29 September 2006)

coyotte said:
			
		

> Tend to find Nick Radge is spot on :
> 
> Forget about the Win% and concerntrate on Profit/Loss %
> 
> ...




Exactly, most will focus just on the win%. Though factors that contribute to it may vary for people. That`s why I was interested in what people thought was the most important factor contributing to it.

Have a good weekend.  
Snake


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## happytrader (29 September 2006)

Hi Snake

The attitude of gratefully accepting and managing whatever the market gives me large or small while exiting my losses very quickly. Leaves no place or time for regrets and attachments.

Cheers
Happytrader


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## tech/a (30 September 2006)

Snake.
I agree in part to Happy.

In answer to what effects win/loss ratio I would say time.

The longer the time the less the win/loss ratio BUT the higher generally the return.

A balance is best and every now and again you'll get an extreme run of Wins and Return.
Stops tend to get hit the longer you stay in trades and the closer they are.

I personally am happy in my short term trading to take quick small losses as I get set for trades which run with momentum then I will hit them hard and fast.


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## stevo (30 September 2006)

Well - it's really a formula isn't it? (I am stating the obvious I guess)

No. of Wins * average win $ / No. of losses * average loss $

So you can have a few big winners and lots of little losses and do OK, or lots of little winners and few little losers, or any other combo you wish to consider.  

Just as long as the ratio is greater than 1, and ideally 3 or more for longer term traders.

The formula also gets away from worrying about single trades. It is looking at portfolio performance over time - the longer the better with a good system. A hundred trades gives a much better picture than 1 trade  

regards
Stevo


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## It's Snake Pliskin (1 October 2006)

happytrader said:
			
		

> Hi Snake
> 
> The attitude of gratefully accepting and managing whatever the market gives me large or small while exiting my losses very quickly. Leaves no place or time for regrets and attachments.
> 
> ...




Agree Happytrader


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## It's Snake Pliskin (1 October 2006)

stevo said:
			
		

> Well - it's really a formula isn't it? (I am stating the obvious I guess)
> 
> No. of Wins * average win $ / No. of losses * average loss $
> 
> ...




How simplistic and logical. 
Thankyou Stevo  




> Snake.
> I agree in part to Happy.
> 
> In answer to what effects win/loss ratio I would say time.
> ...




Thanks Tech.


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## Bobby (1 October 2006)

Like the thoughts of the last four posters on the SPI, please   
regarding the same.

Cheers 
Bob.


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