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Re: blasher post# 5255

Thursday, 04/20/2006 11:45:40 AM

Thursday, April 20, 2006 11:45:40 AM

Post# of 7711
Blasher's Feb/Mar Performance Revisited,
Sorry for takin so long to get back to ya,
Hokay, here is what I did, using your percentages of gain, I just plugged em in sequentially as shown in the spreadsheets, and ended up with significantly lower end profits.

As startin with a $10,000 account that that suffers a 50% loss requires the next trade to become a 100% winner to break even after just those two trades.

Adding percentages (wins and losses)
would have given me:

Example #1
(50%)
100%
-------
net 50% gain

Example #2
when actually I would have:
Account value $10,000 times 0.5= $5,000
Account value $5,000 times 2.0= $10,000 = break even

or if whole account did not suffer the 50%, But,

Example #3
$10,000 times 0.5 or (50%)= $5,000
$10,000 times 2.0 or (100%)= $20,000
$20,000 invested makes $5000 profit:
$5,000 divided by $20,000=.25 or 25% profit
Which, is the method that I used in the spreadsheets for realistic examples.

I am looking for other ways of lookin at this,
any education you can bring to me will be greatly appreciated,
thanks,
bobjack





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