Quote:
Originally Posted by james
If you were to trade markets completely randomly that is your chance of success was only 50% and you had a 2 to 1 expectancy. That is for every dollar you lost you made two dollars you can still make a fortune trading. In fact it is reputed that the legendary group of traders known as The Turtles do almost this in fact it is reputed that their trading system is only right 30% of the time yet they are among the most successful traders in the world.
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Surely this isn't right. If you, for example set a stop loss of 20 pips and took profit at 40 pips, then sure, you'd gain twice as much in a win as you'd lose when you lost, but because the stop-loss is twice as close to your starting position than is the take-profit marker, wouldn't it mean you're twice as likely to lose than win, meaning you're back to 50/50?