16000

Instructions
14000
Press F9 repeatedly to explore the variety of 100 trade
Equity Curves a hypothetical system would be likely to
generate given a specific risk to reward parameter and
win%. Green cells are modifiable.
12000

Inputs - R:R ($) and win%

Win Percentage
Size of Average Win
Standard Deviation of Wins
Size of Average Loss
Standard Deviation of Losses
38.0%
$ 600.00 10000
$ 600.00
$ 200.00
$ 200.00
8000

Computed Values
Expectation Per Trade $ 104.00
Expected Total Return $ 10,400.00 6000
Actual Total Return $ 11,946
Actual Max DD $ 4,114
Trades 100
4000
What Does It Mean?
As you see, a broad variety of positive equity curves can
even be produced by taking purely random entries, which
surprises many traders. Thus, it is important to 2000
understand and be able to quantify the extent to which a
proper risk to reward parameter impacts your results,
and of course, the unconditional adherence to such
parameters. It is also important to understand the role
luck plays in trading. This spreadsheet is simply meant to 0
qualitatively illustrate this reality.
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-2000
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Determinant"Trade" P/LRunning P/LDrawdown
0
0.195124 $(456.26) $ (456) $ 456
0.245234 $ (61.56) $ (518) $ 518
0.936535 $ 205.99 $ (312) $ 312
0.507058 $ 4.02 $ (308) $ 308
0.824637 $ 707.70 $ 400 $ -
0.439918 $ (46.23) $ 354 $ 46
0.655235 $(339.74) $ 14 $ 386
0.929281 $ 6.98 $ 21 $ 379
0.918603 $(431.97) $ (411) $ 811
0.484245 $(458.10) $ (869) $ 1,269
0.55358 $(240.23) $ (1,109) $ 1,509
0.620758 ### $ 41 $ 359
0.924883 ### $ 1,874 $ -
0.996978 ### $ 2,966 $ -
0.341737 $(214.55) $ 2,752 $ 215
0.602651 $(240.65) $ 2,511 $ 455
0.168958 $ 50.29 $ 2,562 $ 405
0.738231 $ 451.79 $ 3,013 $ -
0.456774 $(238.04) $ 2,775 $ 238
0.356466 $(296.87) $ 2,478 $ 535
0.894919 ### $ 3,487 $ -
0.701024 $ 597.30 $ 4,085 $ -
0.109928 $(340.08) $ 3,745 $ 340
0.321908 $(357.61) $ 3,387 $ 698
0.550056 $(113.88) $ 3,273 $ 812
0.854975 ### $ 4,533 $ -
0.238699 $(355.33) $ 4,177 $ 355
0.268527 $ 81.58 $ 4,259 $ 274
0.91102 $(216.90) $ 4,042 $ 491
0.204931 $(610.97) $ 3,431 $ 1,102
0.219182 $ (96.28) $ 3,335 $ 1,198
0.294987 $ 260.23 $ 3,595 $ 938
0.02286 $(166.93) $ 3,428 $ 1,105
0.911049 $ 37.43 $ 3,465 $ 1,067
0.697472 ### $ 5,394 $ -
0.172934 $(432.16) $ 4,962 $ 432
0.222715 $ (44.09) $ 4,918 $ 476
0.389246 $(217.70) $ 4,701 $ 694
0.588282 $(526.87) $ 4,174 $ 1,221
0.473118 $(133.94) $ 4,040 $ 1,355
0.067348 $(270.60) $ 3,769 $ 1,625
0.846532 $ 692.19 $ 4,461 $ 933
0.980355 ### $ 5,534 $ -
0.422634 $ (92.82) $ 5,442 $ 93
0.486581 $ (42.16) $ 5,400 $ 135
0.881411 $ 711.02 $ 6,111 $ -
0.786516 $ 749.20 $ 6,860 $ -
0.039483 $(247.87) $ 6,612 $ 248
0.645538 ### $ 8,276 $ -
0.156138 $(294.87) $ 7,981 $ 295
0.765909 $ 872.69 $ 8,854 $ -
0.475629 $ (76.86) $ 8,777 $ 77
0.646956 $ 257.87 $ 9,035 $ -
0.92679 $ 952.08 $ 9,987 $ -
0.711279 $ 515.57 $ 10,503 $ -
0.306552 $(141.21) $ 10,362 $ 141
0.648429 $ 991.58 $ 11,353 $ -
0.301856 $(404.57) $ 10,949 $ 405
0.523913 $(212.04) $ 10,737 $ 617
0.265317 $(150.95) $ 10,586 $ 768
0.938683 $(600.83) $ 9,985 $ 1,368
0.633663 ### $ 11,560 $ -
0.763078 $ 447.23 $ 12,007 $ -
0.227339 $(266.91) $ 11,740 $ 267
0.366233 $(316.22) $ 11,424 $ 583
0.990718 ### $ 12,820 $ -
0.735064 ### $ 14,174 $ -
0.375913 $(391.84) $ 13,782 $ 392
0.04558 $(393.36) $ 13,389 $ 785
0.291282 $(128.00) $ 13,261 $ 913
0.569834 $(218.95) $ 13,042 $ 1,132
0.402713 $(177.23) $ 12,864 $ 1,309
0.174029 $(242.45) $ 12,622 $ 1,552
0.839178 $(756.25) $ 11,866 $ 2,308
0.605866 $(192.20) $ 11,673 $ 2,500
0.006776 $(219.43) $ 11,454 $ 2,720
0.643715 $ 759.15 $ 12,213 $ 1,961
0.252911 $(204.89) $ 12,008 $ 2,165
0.36152 $(506.59) $ 11,502 $ 2,672
0.36478 $(331.81) $ 11,170 $ 3,004
0.401499 $(197.49) $ 10,972 $ 3,201
0.08738 $ 194.73 $ 11,167 $ 3,007
0.536502 $ (28.08) $ 11,139 $ 3,035
0.590884 $(461.91) $ 10,677 $ 3,497
0.397724 $(286.34) $ 10,391 $ 3,783
0.566609 $(213.35) $ 10,177 $ 3,996
0.828814 $ 557.99 $ 10,735 $ 3,438
0.010083 $(267.61) $ 10,468 $ 3,706
0.325806 $ (97.20) $ 10,371 $ 3,803
0.305154 $(310.54) $ 10,060 $ 4,114
0.693847 $ 925.85 $ 10,986 $ 3,188
0.690224 $ 860.85 $ 11,847 $ 2,327
0.892953 $(212.14) $ 11,635 $ 2,539
0.271542 $(267.75) $ 11,367 $ 2,807
0.97568 $ 666.30 $ 12,033 $ 2,141
0.088886 $(237.28) $ 11,796 $ 2,378
0.53778 $(204.93) $ 11,591 $ 2,583
0.827587 $ 8.93 $ 11,600 $ 2,574
0.098149 $ 192.44 $ 11,792 $ 2,381
0.083481 $ 153.22 $ 11,946 $ 2,228