The math behind profitable trading is the following: - just t | DLavrov Trading Ideas & Tips

The math behind profitable trading is the following:

- just these 2 long trades with 1:5 risk/reward ratio gave $10 of profit with $2 risk
- we have $10 of profit and it covers 10 trades closed by stop with $1 risk per trade
- how many short trades were closed by stop? If I’m not mistaken I posted 3 short trades
- the net profit is about $7
- but I also posted a few long positions which give profit as well…

My point is, 50% and above is a good win rate!
With 1:5 risk/reward ratio you can make even 2 profitable trades from 10 and BE IN PROFIT!

I used $1 risk per trade as an example. You calculate using your trading risk per trade.

Again, remind you:
- it's a stupid idea try to reach 100% win rate = to have 10 profitable trades from 10
- the idea is stupid because it's unreachable or you have to ignore the rules of proper money and risk management
- trades, closed by stop, are part of any profitable trading.

Successful trading is based on money management and trading psychology.

When you focus on the quality of trading signals, strategies, indicators, and other tools... you follow the wrong way.