say:
A:60% to win and winpips:losspips=1:1 and 1lots for 1 pair.
B:60% to win and winpips:losspips=1:1 and 0.5lots fo 2 pairs each(say both are major).
1 trade/pair 1 day.
For A,he has a 60% chance to win and a 40% chance to loss.
For B,he has a 36% chance to win and a 48% to BE and a 16% chance to loss.
IF C trade 3 pairs at same time than he has a 21.6% chance to win as much as the win of A,has a 6.4% to lose as much as a lose of A,has a 43.2% chance to win 1/3 as much of a win of A,and has a 28.8% chance to lose 1/3 as much of a lose of A.
AS they share the same mathematical expectation(arrage),I want to be B who trades more pairs with small lots.why?
The 1st reason is that the DD is smaller so my boss will give me more money to trade.
The 2st reason is that the chance to lose all the money is much less if you trade 3 pairs.(It's not a easy maths problem.But it can be proved using tool of maths)
The 3st reason is that for you have a smaller DD you can use bigger lots to trade which means more profits in your blance.
It seems good i know.But all of this is based on that you have a 60% or higher chance to win in every pairs you trade.Is that ture?I want to someone to help to backtest to see if this system works in other pairs.
thanks.
A:60% to win and winpips:losspips=1:1 and 1lots for 1 pair.
B:60% to win and winpips:losspips=1:1 and 0.5lots fo 2 pairs each(say both are major).
1 trade/pair 1 day.
For A,he has a 60% chance to win and a 40% chance to loss.
For B,he has a 36% chance to win and a 48% to BE and a 16% chance to loss.
IF C trade 3 pairs at same time than he has a 21.6% chance to win as much as the win of A,has a 6.4% to lose as much as a lose of A,has a 43.2% chance to win 1/3 as much of a win of A,and has a 28.8% chance to lose 1/3 as much of a lose of A.
AS they share the same mathematical expectation(arrage),I want to be B who trades more pairs with small lots.why?
The 1st reason is that the DD is smaller so my boss will give me more money to trade.
The 2st reason is that the chance to lose all the money is much less if you trade 3 pairs.(It's not a easy maths problem.But it can be proved using tool of maths)
The 3st reason is that for you have a smaller DD you can use bigger lots to trade which means more profits in your blance.
It seems good i know.But all of this is based on that you have a 60% or higher chance to win in every pairs you trade.Is that ture?I want to someone to help to backtest to see if this system works in other pairs.
thanks.