you can go from $25 risk to $117,000 in 12 trades, with only 9 of them being winners (75% win ratio) using a 1:4 risk reward and risking 50% of the total account after each win
By way of comparison, simply using random entries, attaining 1:4 RR would mean 1 win for every 4 losses, or a win rate of 20%. If you're scalping, then factoring in costs would likely lower this to ~ 15%.
Risking 50% of your account means that 2 consecutive losses will cause ruin. Using Excel's binomial formulae, the probability of ruin is therefore 0.999999248562504, or, in other words, of avoiding 2 consecutive losses over a 12 trade sequence is 1 in ~ 1.33 million**. XLS attached (yellow areas mean > 99.5% or < 0.5%).
[** since a million appears deceptively small, when displayed as 1,000,000....... according to wiki, 1 standard 8oz cup will hold about 7,200 grains of rice. Hence beating odds of 1.33 million to 1 would be equivalent to tipping 185 cups of rice into a vat, and then selecting the one 'correct' grain]
I suspect that doing the math is easier than finding an entry system that's capable of delivering the desired result. But then one FF member has apparently turned $200 into $50 million, so I guess it's possible. Good luck.
