Seniors and friends,
Need advice on this,
How can we calculate annual projected returns with expectancy?
Winners % : 35
Loosers % : 65
R:R : 2.5:1
Expectancy = ( Probability of win X Average win ) - ( Probability of loss x
average loss )
Expectancy = 1/100[(35 X 2.5) - (65 X 1)]
Expectancy = 22.5/100
Expectancy = 0.225
So, suppose I take 4 - 5 trades a day on average and 20 trades per week and 1000 trades per year, what is the projected return per 1000 trades?
Can some one help out here? I need to calculate projected return per year for my new day trading system and compare it with my swing trading system.