Profit to Loss Ratio's

[Derek27]

i dont get why dont you just divide your wins by your losses instead of your wins+losses that way you get a percentage of how much bigger your wins are compared to your losses

I used to do that but I prefer a 0-100% scale. Simply dividing profits by losses means 100% is break-even and all winners becomes infinity.

Derek... I don't quite follow what you've just said... Could you give an example please

If you win £10 and lose £10, 10/10 = 100%. If you win £10 and don't lose anything, 10/0 gives you an error but amounts to infinity more than zero.

[Morbius]

I used to do that but I prefer a 0-100% scale. Simply dividing profits by losses means 100% is break-even and all winners becomes infinity.

Derek... I don't quite follow what you've just said... Could you give an example please

If you win £10 and lose £10, 10/10 = 100%. If you win £10 and don't lose anything, 10/0 gives you an error but amounts to infinity more than zero.

Right so that's the maths part of it clear in my head.....now could you explain to me why do it Derek

[Derek27]

Derek... I don't quite follow what you've just said... Could you give an example please

If you win £10 and lose £10, 10/10 = 100%. If you win £10 and don't lose anything, 10/0 gives you an error but amounts to infinity more than zero.

Right so that's the maths part of it clear in my head.....now could you explain to me why do it Derek

Why do what?

[Morbius]

If you win £10 and lose £10, 10/10 = 100%. If you win £10 and don't lose anything, 10/0 gives you an error but amounts to infinity more than zero.

Right so that's the maths part of it clear in my head.....now could you explain to me why do it Derek

Why do what?

I meant what value you derive from making that calculation

[Derek27]

Every day I run a report on my database listing today's meetings in order of P/L ratio and list my average profit per market (or on the last 25 markets) so I can see where I do best. It's all relative, my overall P/L ratio may be of interest but wouldn't be useful to me.

[firlandsfarm]

I calculate my P/L ratio for individual meetings so I can see how I'm doing relative to other meetings. My overall P/L ratio has never interested me, but now that you've mentioned it, it would be interesting to run a query.

Although I don't trade I'm interested you compare meeting by meeting ... wouldn't race type (or maybe even trade type) be more relevant or do you find that the meeting venue can affect the trading pattern more?

[Derek27]

I calculate my P/L ratio for individual meetings so I can see how I'm doing relative to other meetings. My overall P/L ratio has never interested me, but now that you've mentioned it, it would be interesting to run a query.

Although I don't trade I'm interested you compare meeting by meeting ... wouldn't race type (or maybe even trade type) be more relevant or do you find that the meeting venue can affect the trading pattern more?

Personally, I couldn't distinguish trade types because not every trade is strictly a scalp, swing or otherwise. The market doesn't never behaves exactly the way you're expecting it to after opening a trade so I like a degree of flexibility to change plan.