How to guarantee the winning rate of trading in spot gold and silver

Whether spot gold and silver trading is profitable depends on two indicators, one is the winning rate and the other is the profit-loss ratio. Only when these two indicators are organically combined can profits be achieved.

If only one indicator is discussed, it is impossible to achieve profitability. Many textbooks tell us not to pay too much attention to the win rate. Many profitable masters on Wall Street often have win rates below 50%, and we should find ways to increase the profit-loss ratio.

Then we often get a terrible result according to the textbook. The profit-loss ratio is up, but the win rate is very low. What's more, the win rate and the profit-loss ratio are lower together. How can we improve the profit-loss ratio while guaranteeing the win rate?

Choose trading opportunities with high profit-to-loss ratio

Many people say that the market is unpredictable, and the opportunity to choose a high P / L ratio is purely deceptive. Yes, the market is indeed unpredictable, but it can be expected. Even with basic analysis, even business investment will anticipate risks and rewards.

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Do n’t fix P / E ratio transactions

The previous part said how to determine the trading opportunities with high profit-to-loss ratio. If you just set the stop loss and profit and ignore it, then it is very likely to be a problem. The problem here is that the winning percentage will become very low.

Because the profit and loss ratio is inversely proportional to the win rate, if the fixed profit and loss ratio is 2, the win rate starts from about 33%. Then the win rate must be higher than 33% to be profitable. The win rate will be even lower than 33%, which is what I have tried before in actual combat. Some people have recently used this approach.

P / E ratio is not just part of "surplus"

Improving the profit-loss ratio is not just a part of improving profitability. He has another approach, is to reduce losses. The way to reduce losses is to increase the profit-loss ratio from another angle, which is a part that many people ignore.

When your average loss level is reduced, even if the profit target remains unchanged, it will greatly increase the profit to loss ratio. What's more, it is unknown how much the market is going. The big trend that goes far is often very small. We can control the loss. If we can reduce the loss, we don't need a particularly large market to get a good profit-loss ratio. .

How to guarantee the win rate and increase the profit-loss ratio

We can't wait and wait for the market to either stop loss or take profit. At this time we add a mobile stop loss. This is the most critical part. How should I move after adding the mobile stop loss? Many people will only move the stop loss to the breakeven point or a small part of the profit when the profit is 100 points. In fact, this is not so good.