10-31-2011, 12:09 PM
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#9 |
Join Date: Jan 2007 Location: Houston, TX Thanks: 5
Thanked 6 Times in 6 Posts
| Re: Martingale Trading
80% win rate? If u came up with said holy grail would think obtaining the "deep pockets" part isn't a problem. Unless of course avg loser = 4x avg winner like it usually is with such high probability systems. Quote:
Originally Posted by Klotzki » Siuya,
You don't necessarily need deep pockets. To illustrate what I've outlined, imagine a system whereby:
- You risk only 0.25% of capital (point #2)
- Win rate is 80% (point #3)
5 consecutive losing trades is less than 0.03% probability, and yet you'll still be in fairly good shape with an 8% drawdown. Doing monte carlo will also probably yield acceptable risk of ruin.
Klotzki | |
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