I would like a bit of help to understand an apply mathematical problem.
The problem is related to the stock market. The objective is to buy shares when the stock price is low and sell it when the stock price becomes higher
Each trade I need at least 5 good reasons to pass a trade. According to this, suppose the price has 60% to move up and 40% to move down. The strategy would be to cut the loss when the price drop by 10% and sell when the stock price reaches 30% more than the price I have bought.
How can I describe mathematically that this strategy is profitable on a long period of time?