Trading is all numbers & probability. It’s all Math.
The math portion of trading determines whether you’re going to be profitable or not. You can tweak things in your strategy to fit what the math tells you.
I’m going to break down all of the math that I personally use in trading.
Let’s break this down into 5th grader math lessons. Then we’ll apply it to trading.
Now that’s established..
Let’s say we’ve been trading Strategy C for 5 months and we’ve gathered some information:
$1,000 starting balance.