How to Calculate Needed Winning Percentage in Stock

This is the formula to calculate the needed winning percentage for a stock system to be considered successful:

Needed Winning Percentage = 1 + (Commission / Average Result of Losing Operations)
1 + Profit-Loss Ratio

For example, if the total commission for a stock operation is 15€, the profit-loss ratio is 2, and the average result of losing operations is 400€, the formula to calculate the needed winning percentage is:

Needed Winning Percentage = 1 + (15 / 400)
1 + 2
Needed Winning Percentage = 0,3458 = 34,58%
Contribute with a comment comment0 Comments
mode_editContribute with a comment

menu
menu