OPPORTUNITY RESULTS NOTES
Overview
The Pinnacle Institute tracks the results of the trading and investing opportunities offered by its specialists and proprietary algorithm, Veritas. These opportunities have been presented to members through our proprietary services – The Forum, The Exchange, The Pinnacle Gallery, The Options Plays, and Pinnacle Portfolio.
We track the trades presented to our members daily and keep the proof of all the zones, trade closures and results. The detailed data is available for internal or external audit purpose to ensure utmost accuracy and compliance. These trades are organized by Service type till November 2020 and organized by Asset Class from December 2020. Equities, Futures and Forex are reported for the trades opened in the month of reporting. Trades (Equities / Forex / Futures) are tracked for maximum excursion or stop out, up to a maximum of 30 days from the day of entry. If a trade does not hit the entry within 14 days, it is not included in the calculation. For Options and Investors Portfolio results, the results show cumulative from the beginning of the tracking
Win Percentage
Win Percentage is defined as the percentage of number of winning trades to the total number of trades presented to our members in various services. Some trades (i.e., less than 5 min chart, trades analyzed for practice or demonstration purpose) are not included in the calculation. For a trade to be a winner, it must achieve a minimum of 1 to 1 Reward to Risk Ratio. For example, if we achieve 60 winning trades out of 100 tracked trades, it is presented as 60% Win Percentage.
Risk/Reward Ratio (RRR)
The Reward to Risk Ratio (RRR) is the ratio of actual profit amount to amount at risk.
For example, if the entry price of a stock is $12.00 per share and stop loss price is $11.00, the Risk is $1.00. If the stock price rises from $12.00 to $15.00 then the Reward is $3.00. In this case, the Reward to Risk Ratio is 3:1. It can also be presented as Risk to Reward ratio of 1:3. This ratio helps determine whether a potential trade or investment will offer enough of a return for the risk associated with the opportunity.
We track the results in ‘points’, as we track several markets with different price points and our members have different account sizes and different financial goals. The Pinnacle Institute takes some, but not all, of the trade opportunities presented to our members on a regular basis, as well as on occasion take trades not offered in our services.
