Win/loss ratio

[It's Snake Pliskin]

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

 

[It's Snake Pliskin]

Re: Win/loss ratio -

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.

 

[yogi-in-oz]

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

 

[coyotte]

Tend to find Nick Radge is spot on :

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



Cheers

 

[It's Snake Pliskin]

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

Yogi,

Thanks for your delayed response to the thread.

So your answer is "picking potential winners"

Have a good weekend.
Snake

 

[It's Snake Pliskin]

Tend to find Nick Radge is spot on :

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



Cheers

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

 

[happytrader]

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

 

[tech/a]

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.

 

[stevo]

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

 

[It's Snake Pliskin]

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

Agree Happytrader

 

[It's Snake Pliskin]

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

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.

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.

Thanks Tech.

 

[Bobby]

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

Cheers
Bob.