The Math of Winning

11/01/21 • 24 min

Most traders think that their win percentage is the most important performance statistic of their trading. The relieving truth is this is not the case. In this episode we explore the subject of winning percentage in great detail and dispel all of the myths you might have been led to believe.

Mathematical Formulas:

WinRate = (WinningTrades ÷ TotalTrades) x 100
MinimumWin% = Risk ÷ (Risk + Reward) x 100
AverageGain = WinningTotal ÷ TotalWinningTrades
AverageLoss = LosingTotal ÷ TotalLosingTrades
Expectancy = ((1 + (AverageGain ÷ AverageLoss)) x WinRate) - 1

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Mathematical Formulas:

WinRate = (WinningTrades ÷ TotalTrades) x 100
MinimumWin% = Risk ÷ (Risk + Reward) x 100
AverageGain = WinningTotal ÷ TotalWinningTrades
AverageLoss = LosingTotal ÷ TotalLosingTrades
Expectancy = ((1 + (AverageGain ÷ AverageLoss)) x WinRate) - 1

Zen & The Art of Trading:

Courses & Free Content!

Episode Links & Resources:

Previous Episode

How to Find A Trading Mentor

Scienctific research and the experience of countless successful people has shown that having a mentor to help guide you through a learning journey is one of the most effective ways to guarantee your own success.

Nowhere is this more true than in trading.

This episode explores my thoughts and experiences regarding mentorship, and includes a few tips on how you can find your own perfect trading mentor.

Zen & The Art of Trading:

Courses & Free Content!

Episode Links & Resources:

Next Episode

Don't Trade The News!

In this episode I share my thoughts on financial media and how it factors in to your trading. I like to refer to financial news as “financial entertainment”. It makes a lot more sense that way.

Zen & The Art of Trading: