R/R and % Win tradeoffs

[intradaybill]

Quote from kidPWRtrader:

Marginal win is defined as the extra % gain by holding on after the early exit target to the original exit target.

Original - Early = MW

Marginal Loss is defined as the % loss if we go back down to my stop, which occurs 25% of the time.

ML = Early Exit + Initial risk (my initial risk is always 1%)

Looking at both methods I presented, each seems viable over a coin flip method. In trading sometimes good enough is good enough, just have to pick one method that is more or less aggressive based on my perference maybe...

If your gain is defined as

T = To+Tm

where To is the original and Tm the marginal

and the loss is defined as

L = Lo + Lm

when LO is the original loss and Lm the marginal, then

T/L = (To+Tm)/(Lo+Lm) ~ Avg win/avg loss

from (To+Tm)/(Lo+Lm) you can solve for Tm/Lm provided you know the value of the ratio. One equation, three unknowns here, Tm, Lm and T/L