Calculate expected profit and loss in forex trading with the average winning rate.
What is the Rate of Return on investment?
When you trade based on your trading strategy winning probability, you can forecast how much money you can make in the next period. This is not rocket-solid science unless you maintain your performance exactly as your target.
Suppose you start trading with $5000. Your average winning rate is 55% and you make an average of 25 pips per winning rate and 10 pips per losing trades for 3 traders per day. So if you keep trading with this variable, your trading performance stays the same as it is. Then you will make $27.75 per day & $582.75 profit per month. Almost 11% of your total trading capital with $10 per lot value.
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