Search found 2 matches

by Miles
Wed Mar 17, 2010 4:09 am
Forum: Money Management
Topic: Losing is fate if Winning ratio is 50%?
Replies: 5
Views: 3986

Is there any formula to determine whether the system is profitable or not based on win/lose ratio and winning probability? If your wins and your losses are a fixed %-age of current equity, you can use this formula to determine the winning ratio (% of winners) required to be break-even: x = winning ...
by Miles
Sat Feb 20, 2010 4:19 am
Forum: Stocks
Topic: What is the relationship between Discount Rate and Bond?
Replies: 4
Views: 4159

Eric,

the relationship is purely mathematical (no cause and effect).
Formula: Current Yield = Annual Interest Payment / Current Bond Price
A higher discount rate means a lower price, hence a higher Current Yield.