If SL is bigger that TP then MM breaks down?
TP has to be bigger than SL?
I did Monte Carlo test and when SL is bigger than TP then equity is really not growing and often times even breaks down
is this about so called math expectancy?
If SL is bigger that TP then MM breaks down?
TP has to be bigger than SL?
I did Monte Carlo test and when SL is bigger than TP then equity is really not growing and often times even breaks down
is this about so called math expectancy?
If the amount you lose when your SL is hit is greater than the amount you gain if your TP is hit, then over time you will lose money - UNLESS you have a win rate of at least higher than 50% so that the aggregated capital totals from each outcome over multiple trades balance out in profit.
You are not compelled to have a profit greater than the risk but as a new trader, that would make your job very very difficult.
TP must always be bigger than sl. It’s not a compulsion I think (at least that’s not the case with etoro and fxview) but that’s how it should be if you want to sustain your trading.