Finding percentage required to break even

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SUMMARY

The discussion centers on calculating the maximum average loss required to break even given a set of data: 6 wins, 13 losses, an average win of 14.33%, and an average loss of -4.47%. Participants seek clarification on the context of the percentages, specifically what they are relative to. The main goal is to determine the threshold for average loss that allows for a break-even point in this scenario.

PREREQUISITES
  • Understanding of basic probability and statistics
  • Familiarity with break-even analysis
  • Knowledge of win-loss ratios
  • Ability to interpret percentage data in a financial context
NEXT STEPS
  • Research methods for calculating break-even points in gambling or investment scenarios
  • Learn about win-loss ratio analysis techniques
  • Explore statistical tools for analyzing average returns and losses
  • Study the implications of percentage changes in financial performance
USEFUL FOR

Investors, gamblers, financial analysts, and anyone interested in understanding break-even analysis and risk management in performance metrics.

tumeke
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Hello there,

I have the following set of data

Wins 6
Losses 13
Average Win 14.33%
Average Loss -4.47%

I want to know how to figure out the maximum average loss at which I can still break even. I have tried a few different things but cannot figure it out.

Thanks,
Patrick
 
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Hi Patrick and welcome to MHB. :)

What have you tried?
 
tumeke said:
Hello there,

I have the following set of data

Wins 6
Losses 13
Average Win 14.33%
Average Loss -4.47%
What does this mean? "Average Win" is 14.33% of what? "Average Loss" is -4.47% of what?

I want to know how to figure out the maximum average loss at which I can still break even. I have tried a few different things but cannot figure it out.

Thanks,
Patrick
 
Country Boy said:
What does this mean? "Average Win" is 14.33% of what? "Average Loss" is -4.47% of what?

I was hoping for additional clarification from the OP. Thanks for pointing that out.
 

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