Hello, I am moving over from the programming side of trading, to the research side. I am looking for a formula that will give me projections of the account balance if I am running a certain strategy which has known characteristics of Risk/Reward ratio, and Win/Loss ratio.
Ex) I have a strategy that has a risk/reward ratio of 1:1, and a win/loss ratio of 2:1. If the starting account balance is $10,000, and the lot size traded is 0.10 lots, what would a projection be after 100 trades?
I think this will be a helpful tool for all traders here to use for research purposes, so I am going to try to make a formula that can tell me this. If anybody has knowledge on the subject, please post, all help is appreciated.
Edit: I have made an open office spreadsheet that simulates this, but it isn't quite a formula yet.
Ex) I have a strategy that has a risk/reward ratio of 1:1, and a win/loss ratio of 2:1. If the starting account balance is $10,000, and the lot size traded is 0.10 lots, what would a projection be after 100 trades?
I think this will be a helpful tool for all traders here to use for research purposes, so I am going to try to make a formula that can tell me this. If anybody has knowledge on the subject, please post, all help is appreciated.
Edit: I have made an open office spreadsheet that simulates this, but it isn't quite a formula yet.