POW Trading Calculator.xlsm

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1			CLICK > FILE / MAKE A COPY TO EDIT

2			🔬 Which strategy are you reviewing here?
3		THIS TOOL WILL GIVE YOU THE KNOWLEDGE TO TAKE YOUR TRADING TO THE NEXT LEVEL	e.g. EURUSD 1H
4			e.g. EURUSD 1H
5		It's primary purpose is to help you optimise your risk management by providing a suggested risk % per trade. This is calculated by understanding the probability of likely losing runs, based on the volume of trades and win rate of your strategy.
6			💰The most important question, how much of your capital (%) are you prepared to risk on this strategy?
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8		This is expected to significantly benefit those strategies with a higher win rate as the chances of longer lasting losing runs is signifcantly lower... Typically, we trade all strategies with a blanket risk % (usually 1%) but this tool shows us that this can be dynamic whilst still offering the same level of capital security.	e.g. 10%
9			e.g. 10%
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12		Below, you'll find 5 powerful tabs that can transform your trading:
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14		🧠 Tool This is the main tab and will present you with all of the insights you need. Simply enter your strategy stats in the left-hand column and the rest will calculate for you. "Sensible Risk" row contains the crucial information! Stats should be for up to the last 12 months.	"There is a random distribution between wins & losses for any given set of variables that defines an edge. In other words, based on the past performance of your edge, you may know that out of the next 20 trades, 12 will be winners and 8 will be losers. What you don't know is the sequence of wins & losses or how much money the market is going to make available on the winning trades. This truth makes trading a probability or numbers game. When you really believe that trading is simply a probability game, concepts like “right”& “wrong“ or “win“ & “lose“ no longer have the same significance. As a result, your expectations will be in harmony with the possibilities." Mark Douglas; From His Book:-'Trading In The Zone
15		🎲 Prob Losses This tab shows you the statistical probability of losing runs based on the volume of trades and losing rate (opposite of win rate) of your strategy
16		📊 DD Recovery A common misconception is that if you lose 20% of your capital, you need to make 20% to claw it back. Wrong! You need to make 25%. This tab provides you with all of the recovery gains needed to make up your losses, or enter your own
17		📈 Compound Calc Einstein's famed "8th wonder of the world". Watch how your account grows exponentially over 5 years based on a consistent % gain each month. This should be the cornerstone to your 1, 3, 5 year trading plan.
18		⚖️ BE Win Rate Understanding the minimum win rate that your strategy should have, based on the Risk:Reward ratio, is crucial to building confidence in the strategy
19				© Developed & Owned by Rob Linfoot
20	CLICK THE LINK BELOW TO WATCH THE VIDEO TRAINING... 👇 (CLICK FILE > MAKE A COPY TO EDIT)
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31	https://www.loom.com/share/391b1d0eda484fc1b914f535ac2997f3?sid=cc10d08b-f03d-4fba-a20c-6fc36b4471df
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