Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You start trading with an account worth $ 5 0 0 , 0 0 0 . You decide that the most you want to risk

You start trading with an account worth $500,000. You decide that the most you want to risk on any trade is 0.50% of the account value. You've been following a stock and believe the appropriate entry point is $40 per share with an 8% trailing stop. Your track record indicates that you have a probability of winning on 40% of your trades with an average win of 15%When you lose your average loss is 8%. Based on this information , what is your expectancy on each trade.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Restaurant Financial Management

Authors: Hyung-il Jung

1st Edition

1774631431, 978-1774631430

More Books

Students also viewed these Finance questions