Traders' Roundtable

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 ...

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.