If i risk 2% per trade and i have a reward:risk ratio of 1.5:1 or 2:1, what win rate would i need to maintain to have a 47-55% monthly return on my equity in both examples?
I dont think this will help so much with your question but it is related to money management and has helped me increase my bottom line with very little drawdown…Forex Money Management Calculator
You would need to know how frequently you trade each month to be able to estimate that.
i would say 15-20 trades
Now you need to know how much risk per trade you’re taking?
2% per trade
Well assuming 2-1 for simplicity you would win 4% and lose 2%. On 20 trades per month 16 wins gives 64% and 4 losses minus 8%. Thats 56% return.
Thanks for that, that was quite simple. i just did a manual excel sheet to take into account compounding profits, turns out i need 13 wins out of 20 to maintain a 50% return.
Hey! Who set the whole thing up for you? No way I’m letting Tony take credit for just plugging in the figures.
hahahaha…thanks you’ve been a great help too and not just with this question
LOL. thats the best laugh I have had this morning John