15% of my trades account for my net profitability

In the sales mkt you already know which are the top 20% customers that will generate you those 80% profits...but for trading it's different...if the Pareto law explains the contribution of the top 20% winning trade to the 80% of the profits which will be an optimal scaling strategy since you don't know 'ex-ante' which are winning trades that will generate those profits?
 
As for me (I trade EOW, so it's based on weekly results):
62% of weeks account for 176% of profits (the other 38% are down weeks)
50% of weeks account for 171% of profits
38% of weeks account for 158% of profits
29% of weeks account for 139% of profits
22% of weeks account for 120% of profits
16% of weeks account for 100% of profits
5% of weeks account for 49% of profits

So, eight weeks a year account for all my profits and two or three weeks account for half my profits. Now, if I only knew which weeks were which ahead of time.
 
You must log in or register to reply here.
Back
Top