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#### Apple Forex

##### New member

- Sep 10, 2013

- 4

Hello all!

I currently trade currencies in Forex Market, and I somewhat understand the concept of being a winner long term, but I want to actually see how the numbers can run statistically. Formulas on how it should be calculated would be nice! (I should of paid attention in my statistics class in college )

Here is the data:

I am only willing to risk 1% to 5% of my equity in my account for each trade that I make. For example, let's say I deposit 100000 US Dollars and I risk 1% (1000 USD) per trade, which sums up to be 100 trades.

I have a probability range of 30-40% of winning a trade.

The only way I see winning down in the long run, is if I can extend my risk/reward ratio.

How far can I go with my risk/reward without compromising my equity? Say for example, I am willing to risk 1 dollar to win 3 dollars on a trade, but the trade only has a 30% chance of winning at that ratio. Would it be wise to have a risk/reward at 1 dollar for 2? I know for a fact I will be a loser in the long run if I run it 1 for 1.

Considering that my percentage of having a winning trade is between 30-40%. What is my risk/reward threshold and range? What is the probability of me losing all my equity if I lose ALL my trades?

What is my optimal (or sweet spot) I should wager for each trade for me to win in the long run? Depending on the trade, I can take an aggressive (5%) or conservative(1%) approach.

I can grasp the concept, but I can't seem to grasp the numbers. I would love to know how to properly calculate this! Let me know what you guys think.

I currently trade currencies in Forex Market, and I somewhat understand the concept of being a winner long term, but I want to actually see how the numbers can run statistically. Formulas on how it should be calculated would be nice! (I should of paid attention in my statistics class in college )

Here is the data:

I am only willing to risk 1% to 5% of my equity in my account for each trade that I make. For example, let's say I deposit 100000 US Dollars and I risk 1% (1000 USD) per trade, which sums up to be 100 trades.

I have a probability range of 30-40% of winning a trade.

The only way I see winning down in the long run, is if I can extend my risk/reward ratio.

How far can I go with my risk/reward without compromising my equity? Say for example, I am willing to risk 1 dollar to win 3 dollars on a trade, but the trade only has a 30% chance of winning at that ratio. Would it be wise to have a risk/reward at 1 dollar for 2? I know for a fact I will be a loser in the long run if I run it 1 for 1.

Considering that my percentage of having a winning trade is between 30-40%. What is my risk/reward threshold and range? What is the probability of me losing all my equity if I lose ALL my trades?

What is my optimal (or sweet spot) I should wager for each trade for me to win in the long run? Depending on the trade, I can take an aggressive (5%) or conservative(1%) approach.

I can grasp the concept, but I can't seem to grasp the numbers. I would love to know how to properly calculate this! Let me know what you guys think.

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