I'm stuck on what I'm sure is a very simple problem.(adsbygoogle = window.adsbygoogle || []).push({});

I'm trying to calculate predicted output for my share trading model.

For example, for a strategy the probability of it winning on each trade may be 0.4 and hence a loss is 0.6.

But for each trade it wins, my account balance is increased by 5% and each loss it loses 2%.

How do I calculate how much I would have won or lost after n amount of trades?

Can you break it down to on average each trade its a win or loss of x% so I can just use a simple compound interest formula to calculate expected profit after n amount of trades?

**Physics Forums - The Fusion of Science and Community**

The friendliest, high quality science and math community on the planet! Everyone who loves science is here!

# Simple problem: Gain after n trials given success rate and profibility

Loading...

Similar Threads - Simple problem Gain | Date |
---|---|

I A seemingly simple problem about probability | Jan 29, 2018 |

Simple problems regarding sum of IID random variables | May 30, 2014 |

Simple set theory problem - definition of a J-Tuple | Mar 21, 2014 |

Simple problem involving permutations | Mar 5, 2013 |

Simple, yet tough urn problem | Mar 5, 2012 |

**Physics Forums - The Fusion of Science and Community**