When you get to 1000 SL TP area if the market has a long term direction you can likely do better as pseudo randomness likely won't stop you out but talking 6 month holds here.
Nothing to it, but to do it!!! Stick to the plan FOOL!!!!
Rationale behind "Risk Per Trade" and "Risk/Reward Ratio"? 8 replies
Regarding risk/reward ratio 10 replies
Is a high risk reward ratio overrated? 12 replies
Good reward/risk ratio experiment 20 replies
Risk Reward Ratio and Account Risk 30 replies
DislikedCan you say that in a yoda voice LOL
And 1:1 only makes sense, cause it's easy you place your trade, you add 100 and set your TP, subtract 100 and set your SL, switch off and check back later, not rocket science or in any way clever / good.Ignored
DislikedYes I am sure......many traders succesfully use martingale and averaging amongst others....its common knowledge that almost any method can be fine tuned to be succesful provided th person using it has the discipline and psychological demons sorted out. I dont dismiss anyones trading method. Its just the traders with overinflated egos that cant get that system to work for them feel the need to criticise it and tell the world there is no way it can work. Same old shit mate...just becasue YOU cant get it to work for you doesnt mean it wont...Ignored
Dislikedif i incorperated a set take profit at 1;1 r/r my method would rely upon luck.
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DislikedMy 2c, FWIW:
Agree that just because one trader can't get an indicator or line study to work profitably for him, it doesn't mean that nobody else can use it successfully. Unless one has infinite knowledge, it's impossible to state categorically that a particular tool can not possibly work.
Ultimately it's how one uses the available tools, interprets the market, and puts all of the pieces of the methodology together. There are many roads that can potentially lead to Rome (and even more that don't). Also, after a trader finds a methodology that...Ignored
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Agree that just because one trader can't get an indicator or line study to work profitably for him, it doesn't mean that nobody else can use it successfully.Ignored
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MM is pure math, and consequently applies to trading just as it does to other games of chance. Just as the punter needs a gameplay-based edge (like counting cards in Blackjack) to beat the casino, the trader needs a methodological edge (entries and exits) to beat the market.Ignored
DislikedMartingale, hedging, scaling in/out, etc are all MM variants that are, in themselves, impotent. People say that Martingale works — of course it does, because the in-built recovery system is designed to ensure that every set of trades eventually returns to break even — until the situation occurs when the position sizes escalate to the point that a margin call occurs. Some of the more benign Martingales can deliver profit for several months, even years, before the 'death sequence' occurs. Every working Martingale is merely one that hasn't...Ignored
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That would mean you would have no edge in getting the direction correct, in which case you should not be trading yet at all.Ignored
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i trade price and price dictates at any given moment what decision i should make.ther lies my edge,i read price and take what price offers me.Ignored
DislikedAnd that's trading. We can't control the market, the only thing we can do and be totally in control of is reacting to what the market does, regardless of whether we're right or wrong about where we thought price would probably go. Predicting puts way too much reliance on the market agreeing with us, reacting puts the ball squarely in our court.Ignored
DislikedMy 2c, FWIW:
Agree that just because one trader can't get an indicator or line study to work profitably for him, it doesn't mean that nobody else can use it successfully. Unless one has infinite knowledge, it's impossible to state categorically that a particular tool can not possibly work.
Ultimately it's how one uses the available tools, interprets the market, and puts all of the pieces of the methodology together. There are many roads that can potentially lead to Rome (and even more that don't). Also, after a trader finds a methodology that...Ignored
DislikedWhat's better: A 1:2 Risk Reward Ratio applied to a method that has a 35% hit rate or a 1:1 Risk Reward Ratio applied to a method that has a 70% hit rate? The answer is neither. They both yield the same profit.Ignored
DislikedThe most common belief among Forex Factory Traders is that a 1:2 or higher RR is necessary for profitable trading. People who say this often are under the misunderstanding that there is a 50% chance of the market hitting their SL and a 50% chance of it hitting their target. Well a basic understanding of trading and simple mathematics would show that there is a lower chance of price hitting +20 pips than hitting -10. Many traders think if they can come up with a sytem that has a very slight edge then this 1:2 or higher RR will be what makes them...Ignored
DislikedHi
While I agree with your math. You must consider expectancy ratio.
I haven't read the thread, just responding to opening post.
I am not going to do the math here. Just giving you an example:
If in 1:1 system, the number of consecutive loosing positions is 3-4, then the capital left to trade, will be much lower, so now even if you were to get 3-4 winning trades the percentage will not get you to starting capital.
Again I have no idea about starting capital here or the kind of risk-management/money management that will be run on the account.
Same...Ignored
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Is there an example of a trade you could give us Pipmutt, like just describe a scenario on how you would manage your trade?Ignored
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But all this said I think what I will do is just trade to X as a fixed target. Not increase risk and perhaps just add less aggressively with a tighter SL. It's all I got right now. Whatever profit I make I make.Ignored