Link: Trader Gav – Money Management Interactive Chart

Apr 23, 2007: 7:29 PM CST

TraderGav (Gavin) posted an excellent resource regarding Risk/Reward and Accuracy.

His post describes why it is essential to have an edge in trading, but of particular interest, he provides an Excel Sheet which allows you to input your risk/reward average and play around and see what accuracy rates net what results, given risk/reward.

Download the file, read the article, and see that being 100% accurate  or even 80% or 60% accurate) in your trading can net you great profits.  In fact, you can envision a situation in which you are correct 30% of the time, yet still make large profits (often done with a trend-following system).

1 Comment

One Response to “Link: Trader Gav – Money Management Interactive Chart”

  1. Gav Says:

    Hi Corey,
    Thanks for the mention and link. I am glad to know the post is helpful.

    Gav