How many trades to reach a set profit target

[samdh]

Hi,

I'm trying to calculate how many trades I would need to make to reach a certain profit goal, taking into account win rate and profit/loss ratio.

For example:

Win rate of 50%
Profit/loss ratio of 2:1

Assuming:

A profit trade makes £50
A loss trade loses £25

How many trades to reach a total profit goal of, lets say... £1000

I know the answer is 80 trades, i.e. (40 x £50 = £2000) - (40 x £25 = £1000) = £1000

Here's where I'm struggling... How would I create a calculation in excel to manipulate the various values, win rate, profit loss ratio etc. and find how many trades to meet a set target. Any help much appreciated.
 

[P09Professional]

Hello,

Hope this finds you well.

I have prepared the calculator. Attaching the same for your perusal. 

https://1drv.ms/x/s!AlwK9pqvvQo_aWChCgsxdHMqpLw?e=0zW5co

 

The yellow cells are the inputs and the color coded region is the P&L. 

As mentioned and highlighted, 80 trades with win rate of 50% would lead to P&L of 1000. 

Similarly, the other sheet in the calculator is based on the profit and loss per trade for given trade number and win rate.

 

The cells can be changed as per scenario to get insights. 

 

please let me know if any clarity is required. 

[samdh]

Hi,

That's great, thank you very much. Very helpful!

Many thanks.