![]() If you have two losses in a row it compounds though. Let me calculate out for 5% just because I never have. Calculate percentage gain required to be back to breakeven. Take amount, divide total/drawdown result amount. ![]() So you have a half a percent handicap actually with that drawdown only. You need to win 2.05% back to get back to $100. Lets say you have $100 and have a 2% loss to $98. To calculate win rate required per drawdown. If a trade costs $10 with a capture/stop of $100 you have a 10% handicap.Īll of these different factors must be accounted for. You also need to calculate for commissions/spread handicap. It's how much of a drawdown that position size creates when it hits your stop out point. The higher your drawdowns the higher the win rate required to stay positive.
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