I get the point you're making but that wording will easily confuse folks. I'd say you're risking $125 to make $125 with a 55% win rate. The net effect over a large enough sample rate is that after the 55% winrate you expect to make an average of $12,5 per trade (even less after comms and slippage) which over 6 trades a day should statistically result in 12,5 x 6 = $75 daily average.

Basically: 100 trades

45 losses, 45 * 125 = -5625
55 wins, 55 * 125 = +6875
$1250 gains / 100 trades = $12,5 avg. theoretical gain per trade before comms, slippage, fatfingers, missed signals etc.

Throughout a day with 6 trades you are risking a worst case scenario of 6x125 = $750 max drawdown to make an expected average of $12,5 x 6= $75 a day.

But on a roll by roll basis you are risking 1 to gain 1.

To me these are not very favourable margins, and they come with a huge skew potential if/when your winrate dips (4 losses a day: -500 + 2 wins +250 = -250 net, meaning you need at least 2 wins the next day just to recoup previous day). But to each his own.

I get the point you're making but that wording will easily confuse folks. I'd say you're risking $125 to make $125 with a 55% win rate. The net effect over a large enough sample rate is that after the 55% winrate you expect to make an average of $12,5 per trade (even less after comms and slippage) which over 6 trades a day should statistically result in 12,5 x 6 = $75 daily average.

Basically: 100 trades

45 losses, 45 * 125 = -5625
55 wins, 55 * 125 = +6875
$1250 gains / 100 trades = $12,5 avg. theoretical gain per trade before comms, slippage, fatfingers, missed signals etc.

Throughout a day with 6 trades you are risking a worst case scenario of 6x125 = $750 max drawdown to make an expected average of $12,5 x 6= $75 a day.

But on a roll by roll basis you are risking 1 to gain 1.

To me these are not very favourable margins, and they come with a huge skew potential if/when your winrate dips (4 losses a day: -500 + 2 wins +250 = -250 net, meaning you need at least 2 wins the next day just to recoup previous day). But to each his own.

Yes, that was what I was trying to say, sorry if I was misunderstood. Also, the 125$ risk is an average, sometimes I risk more or less, and the 10% expectancy that I'm getting is AFTER I account for slippage and commissions. Before slippage and commissions I have an expectancy of ~18% (22,5$ profit per trade).

I get the point you're making but that wording will easily confuse folks. I'd say you're risking $125 to make $125 with a 55% win rate. The net effect over a large enough sample rate is that after the 55% winrate you expect to make an average of $12,5 per trade (even less after comms and slippage) which over 6 trades a day should statistically result in 12,5 x 6 = $75 daily average.

Basically: 100 trades

45 losses, 45 * 125 = -5625
55 wins, 55 * 125 = +6875
$1250 gains / 100 trades = $12,5 avg. theoretical gain per trade before comms, slippage, fatfingers, missed signals etc.

Throughout a day with 6 trades you are risking a worst case scenario of 6x125 = $750 max drawdown to make an expected average of $12,5 x 6= $75 a day.

But on a roll by roll basis you are risking 1 to gain 1.

To me these are not very favourable margins, and they come with a huge skew potential if/when your winrate dips (4 losses a day: -500 + 2 wins +250 = -250 net, meaning you need at least 2 wins the next day just to recoup previous day). But to each his own.