Win bigger than you lose
Payoff ratio is your average winning trade divided by your average losing trade. A trader who wins 40% of the time with a payoff of 2 makes money; one who wins 70% of the time with a payoff of 0.3 loses it.
1.Do the break-even sum
The win rate you need to break even is 1 ÷ (1 + payoff). At a payoff of 1 that's 50%; at 2 it's 33%; at 3 it's 25%.
2.Cut losers at the stop, not later
Every loss you let run past its stop drags your average loss up and your payoff down.
3.Read your results card
After each race Market Racers shows your win rate, average win, average loss and payoff. Those four numbers are what a real trader reviews at the end of the day.
Practice race · Marathon, unrated
Finish with at least 2 trades and an average win at least 1.5× your average loss.
Start the practice race