P&L Forecaster Using Average Win, Win Percentage and Win/Loss Ratio
The P&L Forecaster is for discretionary and automated traders who wish to forecast their future P&Ls and gain insight and understanding into their edge in the markets.
The Forecaster is based on the average win, win percentage and win/loss ratio of trades for a trader, trading system or portfolio. The path is generated using a normal distribution (bell curve) around the inputs.
To use the P&L Forecaster, enter the average win, percent wins and win/loss ratio and press "Forecast".
For example, to get a two year P&L forecast, enter statistics from your historical weekly results. The forecast will then correspond to the next 100 weeks of trading.
Running the Forecaster multiple times will yield different paths to similar forecasts.
There is as much information in the path and its slope as their is in the endpoint; remember it's a forecast and not a guarantee.