止盈止损的概率效应

Countless contract liquidations have taught me an important lesson: the significance of setting take-profit and stop-loss levels!

As long as total profit is greater than total loss, we have already surpassed 90% of traders. So how should we set take-profit and stop-loss?

① Each stop-loss ≤ 5% of total capital;
② Each profit > 5% of total capital;
③ Total trading win rate > 50%

If the above requirements are met (profit-loss ratio greater than 1 and win rate greater than 50%), profit can be achieved. Of course, there can also be high profit-loss ratios with low win rates, or low profit-loss ratios with high win rates. This may seem simple, yet in practice, there are always many individuals who #take profit when they are winning and stubbornly hold on when they are losing, knowing that this is wrong but unable to control themselves. This is the weakness of human nature; greed and fear need to be managed through capital management.
#止盈止损的概率效应