xCombo

Risk and money management are the linchpins of this system’s profitability. Position size is flexible and adjusted to keep trade risk constant as a % of account balance, independent of net pip accumulation. Profitability can only be judged by % of equity growth.

Example to illustrate below:
Trade 1: SL = 25 pips @ 2% of account balance w/ 62 pip target has potential of 4.5% equity gain
Trade 2: SL = 120 pips @ 2% of account balance w/ 300 pip target has potential of 4.5% equity gain

With balance of $1,000 and trade 1 is win and trade 2 loss then:
net pips = -58
net $ = +$25
If trade 1 is loss and 2 is win then:
net pips = +95
net $ = +$25

Also because of risk management, win ratio is also not correlated to net $/% equity growth (without accounting for RR). The following example will help further illustrate this point: