Rnddude

Swing Trader in the making.

[Rnddude @Rnddude1]

Let's even go to the breakeven case for trader 1 and compare:

Trader 1:
(EV + (1-WRL)*RL)/WRL = EG
EG = (0 + (1-0.37)*0.5ATR)/0.37 = 0.85ATR
EV = 0

Let us take the same gain and see what the EV for trader 2 is:

EV = 0.52 * 0.85ATR - 0.48 * 1ATR = -0.04ATR

5/n

[Rnddude @Rnddude1]

Now if we calculate their Expected Value per trade, we get the following:

Trader 1:
EV = WRL * EG - (1-WRL)*RL
EV = 0.37 * 5ATR - 0.63 * 0.5ATR = 1.5ATR

Trader 2:
EV = WRH * EG - (1-WRH)*RH
EV = 0.52 * 5ATR - 0.48 * 1ATR = 2.1ATR

3/n

[Rnddude @Rnddude1]

If we take to traders with the values of your chart.
Trader 1:
Position Risk: RL = 0.5ATR
Winrate: WRL = 37%

Trader 2:
Position Risk: RH = 1ATR
Winrate: WRH = 52%

Both enter the same trade at the same spot. Thus both have the same expected gain (EG).
Let's say EG=5ATR

2/n

[Rnddude @Rnddude1]

@n_bancroft2 Awesome. Thank you very much for your response! Makes sense to me.

[Rnddude @Rnddude1]

@NickDrendel That is a great idea!

[Rnddude @Rnddude1]

@NickDrendel It looks like the bottom of the support gap should be at the close of pink day. So it is not quite an U&R.

[Rnddude @Rnddude1]

@NickDrendel @Deepvue Check out the published script: https://t.co/GEl4PmT6R0

I use it everyday and it really helps. I hope you find it useful!

Thank you for the inspiration, the video about it and all the work you do for the community!

[Rnddude @Rnddude1]

@Mo_U_Gad @ZaStocks can you tell me, why you blocked me? I am just a silent reader.

[Rnddude @Rnddude1]

@Clement_Ang17 You are such an inspiration to me!

[Rnddude @Rnddude1]

@NickDrendel Awesome, thank you! I will add this to my study.

[Rnddude @Rnddude1]

@nickschmidt Are you saying I am fat?

[Rnddude @Rnddude1]

@Clement_Ang17 Thank you so much. That is very valuable.

[Rnddude @Rnddude1]

@BigWaveChartist Thank you! I will now study the EP after @PradeepBonde EP Masterclass and your stack and hopefully make it one of my two go-to setups.

One quick follow up, if you dont mind:
Do you place your SL after placing your order? How do you calc position sizes in real time quickly?