Do most of your profits come from a small % of trades?

[ironchef]

And those who don't trade but have something to say, keep it coming and what forums are about. You be surprised at how many ideas I have gotten from those in testing phases or just come here for fun. And those that don't like me, tough shit-put me on ignore.

Absolutely. One can learn from winners and losers alike, as long as they post something of substance.

Best wishes, to your health.

 

[Steve Alexander]

I find that even if you have a decent win rate 50-60%, most profits will come from 10-15% of winners?

I'm running two strategies, QQQ and XIV. This year, the strategy on QQQ has won 13/14 trades, making 21% profit, so far. Maximum draw down (peak to valley) was 4%. The one on XIV has won 14/15 trades, making 69% profit, with maximum draw down (peak to valley) of 15%. The QQQ strategy has an open position with a small loss (0.2%). XIV has no open positions. These figures include all commissions and fees.

Of course some trades make more than others, but I haven't paid much attention to how many trades made most of the money until now. (Thanks for bringing it up.)

As it turns out, the largest trade profit on XIV was 11%, and the smallest trade profit was 1.6%. Average profit/trade was 4.9%, and average loss per trade (one trade) was 1.3%.

I won't bore you with more details. I hope this is helpful.

 

[Traderjohnsblog]

That might possibly be true collectively, over all profitable traders' profitable trades (though even there, I doubt it, to be honest), but it's very clearly not true of many professional traders' profits, such as scalpers and all those with fixed targets.

Funny, I just took a quick look at my numbers and roughly 80% of my profits come from 20% of my trades. Hmmm.

 

[sss12]

I'm running two strategies, QQQ and XIV. This year, the strategy on QQQ has won 13/14 trades, making 21% profit, so far. Maximum draw down (peak to valley) was 4%. The one on XIV has won 14/15 trades, making 69% profit, with maximum draw down (peak to valley) of 15%. The QQQ strategy has an open position with a small loss (0.2%). XIV has no open positions. These figures include all commissions and fees.

Of course some trades make more than others, but I haven't paid much attention to how many trades made most of the money until now. (Thanks for bringing it up.)

As it turns out, the largest trade profit on XIV was 11%, and the smallest trade profit was 1.6%. Average profit/trade was 4.9%, and average loss per trade (one trade) was 1.3%.

I won't bore you with more details. I hope this is helpful.

@Steve Alexander just
out of couriosity, are these credit spreads ?