DislikedPaul, nice explanation there. That should help a lot of people who haven't yet been able to see the bigger picture yet.
Cheers,
BakIgnored
Both
Im looking for, opportunities that are less than 10 pip risk, one per day, that will run for 1000 pips take profit but the occurences of such opportunity must be less than 1 per 100 cycle.
AND
1:100 is only viable IF 1000 pip rewards happen more often that 1 per 100 cycle.
are contradicting each other imo.
I spend literally hours today dissecting this just one post word by word. Every word/sentence has a overwhelming deep meaning in it.
The last para says it all ... "but I can assure you everything is in this one post. Condensed and hidden, not purposefully by myself, but unfortunately by the reader and their choice to understand what they wish to understand. It is just human nature,.. unknowingly and unfortunately."
Graeme knew we would understand and misunderstand bits and pieces of this post of what we choose to understand.
I understand most of it except the two contradicting statements highlighted above is puzzling me. I personally don't believe it is a typo in our mission statement.
To get to the bottom of this, I did some modeling of this theorem in excel to play around with different scenarios of risk/reward to gain a better understanding of this concept.
Hope this worksheet helps those who are struggling with this. Please 'beta-test' it and let me know if I got all the worksheet calculations right.
Attached File(s)
Risk-Reward-Theorem-MissionStatement.xls
56 KB
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858 downloads
Staying in my lane...