Hi,
This is a very basic question. I have been trying to find a trading strategy that would give me a good return on investment. I know many traders will say that the risk/reward ratio is more important than the success rate of trades, but I am more comfortable with the latter.
On daily timeframes, the strategy I used would have given over 14000 pips when applied on 12 currency pairs for the whole year 2009. The success rate of trades is around 82%. The 2009 backtest gave 53 winning trades (average=+347 pips/trade) and 12 losing trades (average=-314 pips/trade).
My question is: if I had 500$ as starting capital, what would have been the net profit if my risk is up to 5%. I know it has to do with the type of account and the value of one lot, the leverage and all that, but it would help me a lot to understand if somebody could give examples. What about 100$, 1000$, 5000$ as starting capital?
Thanks and regards.
This is a very basic question. I have been trying to find a trading strategy that would give me a good return on investment. I know many traders will say that the risk/reward ratio is more important than the success rate of trades, but I am more comfortable with the latter.
On daily timeframes, the strategy I used would have given over 14000 pips when applied on 12 currency pairs for the whole year 2009. The success rate of trades is around 82%. The 2009 backtest gave 53 winning trades (average=+347 pips/trade) and 12 losing trades (average=-314 pips/trade).
My question is: if I had 500$ as starting capital, what would have been the net profit if my risk is up to 5%. I know it has to do with the type of account and the value of one lot, the leverage and all that, but it would help me a lot to understand if somebody could give examples. What about 100$, 1000$, 5000$ as starting capital?
Thanks and regards.