March 9, 2021
The following HTML file deals with some of the basic math of a long-term stock trading portfolio. It reduces the problem to two numbers, one of which is a simple counter. Because trading over the years can imply a lot of trades, we have to look at the problem in terms of averages. What will the average net profit per trade tend to when you have a large number of trades? It is a basic question that appears difficult to solve, and yet, it can be greatly simplified. That you trade automated or by hand, the equations presented will still hold. The final outcome of a trading strategy is the result of simple math, simple equations, nothing complicated.
March 9, 2021, © Guy R. Fleury. All rights reserved.