DislikedOkay, let's start a new discussion.
What do you guys think is more important for compounding purposes.
High (e.g. 70%) Win-rate with negative R:R or high R:R with very low win-rate (e.g. 30%)?
Since I believe there is always a trade-off between win-rate and R:R, it is a valid discussion point.
As some of you know, I have been backtesting profit taking with high R:R for quite a bit. It still looks like the best way for me of compounding, but shiko's experiment made me think about win-rates.
Now, I was also thinking if we decrease the R:R to 1:1...Ignored
I think that high hit rate with higher stop compared to take profit can work, but only if stop is not moved like it happened few times in my case. It completely ruins results. Plus what take profit should be? smaller ok, but how smalller. For example if stop is 40 pips and take profit is 20-25 pips. It is ok, but if it is 10 pips take profit I do not know. Almost forgot, here is a nice article again from BRV/ Steve.
1. http://www.nobrainertrades.com/2008/11/stop-losses.html
2. http://www.nobrainertrades.com/2010/...placement.html