Let's try to apply a bit of theory, taking the average results, and see what we can achieve by observing only the Expected Value in our trading system, no super deals.
Initially, we have a 10C stop in the stock, but considering the average slippage of 12C
We set the commission 0.006С
The profitable trade is 45C
The ratio is about 1 to 4 it turns out
Position in 1000 shares with us
Consider 2 Options :
BUT) First 3 сделки у нас всегда в минус 12С на 1000 shares this 120$ with commission 132$. Fourth deal plus 45C always.
B) First 2 сделки у нас всегда в минус 12С на 1000 shares this 120$ with commission 132$. Third deal plus 45C always.
Suppose that on average we do 10 deals per day.
| A | B | ||||||
| Gross | Volue | Net | Gross | Volue | Net | ||
| 1 | -120 | 2000 | -132 | -120 | 2000 | -132 | |
| 2 | -240 | 4000 | -264 | -240 | 4000 | -264 | |
| 3 | -360 | 6000 | -396 | 210 | 6000 | 174 | |
| 4 | 90 | 8000 | 42 | 90 | 8000 | 42 | |
| 5 | -30 | 10000 | -90 | -30 | 10000 | -90 | |
| 6 | -150 | 12000 | -222 | 420 | 12000 | 348 | |
| 7 | -270 | 14000 | -354 | 300 | 14000 | 216 | |
| 8 | 180 | 16000 | 84 | 180 | 16000 | 84 | |
| 9 | 60 | 18000 | -48 | 630 | 18000 | 522 | |
| 10 | -60 | 20000 | -180 | 510 | 20000 | 390 | |
| 11 | -180 | 22000 | -312 | 390 | 22000 | 258 | |
| 12 | 270 | 24000 | 126 | 840 | 24000 | 696 | |
| 13 | 150 | 26000 | -6 | 720 | 26000 | 564 | |
| 14 | 30 | 28000 | -138 | 600 | 28000 | 432 | |
| 15 | -90 | 30000 | -270 | 1050 | 30000 | 870 | |
| 16 | 360 | 32000 | 168 | 930 | 32000 | 738 | |
| 17 | 240 | 34000 | 36 | 810 | 34000 | 606 | |
| 18 | 120 | 36000 | -96 | 1260 | 36000 | 1044 | |
| 19 | 0 | 38000 | -228 | 1140 | 38000 | 912 | |
| 20 | 450 | 40000 | 210 | 1020 | 40000 | 780 | |
| 21 | 330 | 42000 | 78 | 1470 | 42000 | 1218 | |
| 22 | 210 | 44000 | -54 | 1350 | 44000 | 1086 | |
| 23 | 90 | 46000 | -186 | 1230 | 46000 | 954 | |
| 24 | 540 | 48000 | 252 | 1680 | 48000 | 1392 | |
| 25 | 420 | 50000 | 120 | 1560 | 50000 | 1260 | |
| 26 | 300 | 52000 | -12 | 1440 | 52000 | 1128 | |
| 27 | 180 | 54000 | -144 | 1890 | 54000 | 1566 | |
| 28 | 630 | 56000 | 294 | 1770 | 56000 | 1434 | |
| 29 | 510 | 58000 | 162 | 1650 | 58000 | 1302 | |
| 100 | 2250 | 200000 | 1050 | 6810 | 200000 | 5610 |
| 1000 | 22500 | 2000000 | 10500 | 69810 | 2000000 | 57810 |
Through 1000 deals, if you do on average per day 10 deals = 100 days in the first version we will earn 10500$, but in the second we will already earn 57810$ с учетом комиссии.
Of course, this is just a theory and in reality things are different., но если соблюдать Математическое ожидание мы можем добиться хороших результатов совершая средние сделки.
