DislikedActually you don't. I modified the original spreadsheet to handle varying TPs and SLs as well as varying probabilities for an 'up' move.

The triangle is of size 8 only, for the sake of illustration. You get the probabilities of hitting SL/TP on the bottom line.

One could implement the same in VBA using objects and recursive functions, but I don't quite have the energy today.Ignored

Anyway guys, there is one fact that we can concluded from the spreadsheet, which is the profit factor is always one no matter how you manipulate your TP/SL. Base on this conclusion, we can do a simple calculation for any TP/SL without using a pascal's triangle. Of course this is assuming a random walk.

Attached File

Random walk and Pascals triangle R3.zip 472 KB | 182 downloads