Interesting But True Strategy Question

[iMusingKiMi]

Hi Guys,

I have a question today for you guys. It might be interesting, but I can assure you it is fully related why money and risk management are important in trading.

Question:

Example: I will provide you a 100k to go for Casino and Gamble. Casino will let you know directly that your winning ratio of percentage will be at 49%. What strategy will you apply when you start gambling there to ensure you might have a chance to win money.

I will share you guys the answer next few days but I would like to heard from you guys what strategy will you all apply?

 

[EuroTrader]

Hi Guys,

I have a question today for you guys. It might be interesting, but I can assure you it is fully related why money and risk management are important in trading.

Question:

Example: I will provide you a 100k to go for Casino and Gamble. Casino will let you know directly that your winning ratio of percentage will be at 49%. What strategy will you apply when you start gambling there to ensure you might have a chance to win money.

I will share you guys the answer next few days but I would like to heard from you guys what strategy will you all apply?

I think that in the Forex trading business what is more important for us as a trader is to earn a consistent income and this only means that we should not be doing gambles in our trades and try to reduce the risks as mush as possible

 

[grabthatpip]

Hi Guys,

I have a question today for you guys. It might be interesting, but I can assure you it is fully related why money and risk management are important in trading.

Question:

Example: I will provide you a 100k to go for Casino and Gamble. Casino will let you know directly that your winning ratio of percentage will be at 49%. What strategy will you apply when you start gambling there to ensure you might have a chance to win money.

I will share you guys the answer next few days but I would like to heard from you guys what strategy will you all apply?

they are many popular betting strartegy out there, like card counting, martingale, kelly, etc
and if we talking about trading
what ever your system is, money management is important.

sometimes i read gamble articles and they always say , if you want to gamble, only risk 1-2% from your bankroll
and this is applied in trading too, because you can applied same money management in forex like martingale or else.

if we talking 49% chance of winning, so my system will be around 1:1.5- 1 : 2 risk reward ratio,. dunno if 1:2 risk reward ratio can applied in casino. because casino is full with limits, like table limits, profit limits, time limit , etc

So if you provide me 100k to go to casino. well i will deposited this money and split it into several forex brokers with promotional campaign, and taking benefit from it..
either it is a live trading contest , a Grand IB Conquest Contest, a withdrawable bonus, or bonus can be use to mantain drawdown,or else. lol

 

[iMusingKiMi]

I think that in the Forex trading business what is more important for us as a trader is to earn a consistent income and this only means that we should not be doing gambles in our trades and try to reduce the risks as mush as possible

Absolutely yes. I will let you know the answer and you will find it fun but true. And of course, I can assure from this question, you will start realize why trading is not gambling.

 

[iMusingKiMi]

they are many popular betting strartegy out there, like card counting, martingale, kelly, etc
and if we talking about trading
what ever your system is, money management is important.

sometimes i read gamble articles and they always say , if you want to gamble, only risk 1-2% from your bankroll
and this is applied in trading too, because you can applied same money management in forex like martingale or else.

if we talking 49% chance of winning, so my system will be around 1:1.5- 1 : 2 risk reward ratio,. dunno if 1:2 risk reward ratio can applied in casino. because casino is full with limits, like table limits, profit limits, time limit , etc

So if you provide me 100k to go to casino. well i will deposited this money and split it into several forex brokers with promotional campaign, and taking benefit from it..
either it is a live trading contest , a Grand IB Conquest Contest, a withdrawable bonus, or bonus can be use to mantain drawdown,or else. lol

Frankly said in my opinion, you need to go for "Back to the Basic" if you really wanna make living in trading career.

 

[iMusingKiMi]

Here we go for the answer.

The answer is pretty simple.

Bet 100k in 1 hand. Funny answer right? I will explain why.

I have already told you that you have only 49% winning rate which means with every 100 hands, you will only have 49 hands win. This means the more time you are betting with me, the more you will lose and this is what we call "EDGE" no matter for casino house or in trading.

What we can learn from the question and answer is in trading, we are all talking about "EDGE" and "PROBABILITY". No matter in technical or fundamental, it provides us higher edge in long term if your system or strategy is good.

Let us do some simple maths.

In trading, we have EVEN of odds because the outcome is either BUY or SELL. Since we have to pay the spreads, therefore to profit percentages will be decrease to maybe roughly 49.5%.

In additional with technical or fundamental "EDGE", let's say it just provide us another 6% to 55% against 45%. This means in every 100 trade, you will have 55% success rates. Yes, with good money and risk management with high discipline trading, you can make your living even with 55% of success rate.

Hence, you don't need to be perfect in trading.

 

[parichy]

trade is not a gambling you make profit by taking less risk.