The odds do make sense though. Using these limits over the past 20 years... I would have a 6% chance of losing 30% of my invested money... And a 94% chance of gaining 7%. (-30% * .06) + (7% * .94) = +4.78% These are better odds than any other combination I found.
Now, when you stated it like that, of course it does. But in the original post of this topic, - does not. I guess , time will show.
One thing that throws my numbers off is that I can only set limits at 0.25 increments. But nothing I can do about that.
Congrats on your profit today. I can tell you’re excited. But I suggest you rethink your reward to risk in how you set up your SL. A few losses back to back will hurt you far more than a few wins will benefit you.
I know. But I don't know what to do about that. One thing that helps is that I always invest the same amount. So I don't suffer the same type of "decay" that leveraged Etfs do. If I win, I set the money aside. If I lose, I have to bring more money into the account (or use what I had set aside).
I could have just as easily done 30. But I was advised to only include since they started HFT, so I picked year 2000.