Win/loss ratio?

N

Nutzo

For an intraday equity trader that trades mostly Nazdaq stocks ranging from 50-200 dollars and does around 20 roundtrips per day. What would be a good ratio? 1 dollar loss and 3 dollar gain? I would like to hear everybody's ratio, and can you include how many roundtrips, price range of stocks,etc that you trade. :)
 
Since everyone's trading is so different here (swing, scalping, liquidity trading etc) a better question might be what their average cents-per-share profit is. Most profitable traders would fall in the 1-2 cent per share range. Just a thought.
 
Quote from Nutzo:

For an intraday equity trader that trades mostly Nazdaq stocks ranging from 50-200 dollars and does around 20 roundtrips per day. What would be a good ratio? 1 dollar loss and 3 dollar gain? I would like to hear everybody's ratio, and can you include how many roundtrips, price range of stocks,etc that you trade. :)
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I think I am unusual in the sense that my methodology requires a very high win ratio from what I see posted on et...Most posts I see are "You can be a winner with a 50% win ratio" but that would bury me...

Keep in mind that I'm swing only...
 
Ok......So lets say I'm trading GOOGLE for the day. If i'm putting on 20 roundtrips per day of 500 share lots. Should I take a loss of .10 cents and a gain of .30 cents?
 
Quote from Nutzo:

For an intraday equity trader that trades mostly Nazdaq stocks ranging from 50-200 dollars and does around 20 roundtrips per day. What would be a good ratio? 1 dollar loss and 3 dollar gain? I would like to hear everybody's ratio, and can you include how many roundtrips, price range of stocks,etc that you trade. :)
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W/L ratio doesn't tell you anything definite. A superb W/L ratio with a low probability of wins, still makes you lose.
 
Quote from Nutzo:

I think I'm confused, I'm trying to ask about everyone's risk/reward ratio.:confused:
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Risk/reward ratio:
Relationship of substantial reward corresponding to the amount of Risk taken; mathematically represented by dividing the Expected return by the standard deviation.

The title of the thread is Win/loss ratio. That's what Nononsense is refering to.
Indeed, W/L ratio is meaningless; Risk/reward ratio is very valuable.
 
I'm sorry.............

I got confused like a FAT GIRL at a BUFFET trying to decide what to eat first. :eek: lol

I had a rough weekend and would like to re-title this thread risk/reward ratio.

Should I start a new thread this one I guess is "blown up".
 
20 rt's a day is basically scalping. Scalpers operate on a high win/loss ratio and low r/r ratio for the most part. I dont think it is reasonable to expect to achieve 1/3 on 20 rt's. Just my opinion.

edit: I know some of you 200+ rters's would not think 20 rts is scalping but to me it is.
 
YES!!!!! YES!!!!! YES!!!! 3/1 win/loss ratio is very good and very doable with 20 roundtrips a day. With a 3/1 ratio your winning percentage only has to be 30% for you to be profitable. I average a 3/1 ratio and do between 10 to 40 roundtrips per day. However I strongly advise you not to try this with GOOG!! You can't control or limit your losses to 10cents or any preset loss limit because it is way to volitile and bids and offers disapear too quickly. You want to limit your losses to 10cents but you don't have to limit your winners to 30 cents if you can get more out of them. Win/loss ratio determines wether a trader is profitable or not, strategy(winning percentage) is what determines how much money they make.
 
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