
05 - SPY 45 DTE Income Strategy Deep Dive
The Trade Busters
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The Risk Reward Ratio Is 9 to 5
The risk reward ratio is 9 to 5 right because we're taking the average loss of the body by the average one so 9 to 5 so pretty bad it's almost like 10 you know 10 losers. The premium capture rate is calculated based on the win rate the average when an average loss that's just a normal expectancy calculation. As we increase the profit target we're increasing the average win size and we're increased the premium capture but we're also increasing the time and trade.
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