win rate
capital
risk management
hit rate
fix these 4 things and you’ll never lose money on trades
example:
on every 10 trades you take, you win 2 trades
your win rate is 20%
you have $200 capital
to mange your risk by splitting $200 into 10 places
so $20 per trade
hit rate: how many x’s per trade do you usually get
if you can do 10x on every win then you’re profitable
you need to know how much you can get that can give you your initial capital
10 x $20 = $200