Hi,
Anybody have a idea of 1:3 risk to reward or more 1M or 5M system? if any then please share me.
Thanks.
Anybody have a idea of 1:3 risk to reward or more 1M or 5M system? if any then please share me.
Thanks.
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DislikedI have a problem with the whole 1:3 or 1:2 or any R:R basically
if you are doing it with a stop of lets say 20:40 or 20:60 it is far more likely that noise hits your 20 stop so the probability of stop out is far greater.
you can only say you have 1:3 R:R if you KNEW in advance the volatility of the market and the momentum towards your t/p target.
as it stands you can cover your Risk to an extent if you are aware of volatility but your reward is X (unknown) unless you are using the sigma of the instrument as well in which then the 1:2 or 1:3...Ignored
DislikedI used R:R in designing my system. While Redlion is right about the fact that your S/L will get hit more often, it's not necessicarily the case that you can't find an edge because of this.
I will say that the 1:3 R/R seems to be very, very difficult to achieve. I've not been able to find a system that goes 3x Risk "enough" to make it workable. Currently, I use a 1:2 target, and I found that you can work that profitably. Furthermore, the win ratio for a successful 1:3 system is probably going to probably over around 29% to 31%....Ignored
DislikedI used R:R in designing my system. While Redlion is right about the fact that your S/L will get hit more often, it's not necessicarily the case that you can't find an edge because of this.
I will say that the 1:3 R/R seems to be very, very difficult to achieve. I've not been able to find a system that goes 3x Risk "enough" to make it workable. Currently, I use a 1:2 target, and I found that you can work that profitably. Furthermore, the win ratio for a successful 1:3 system is probably going to probably over around 29% to...Ignored
Disliked1:2 is seems arbitrary to me. but please explain further maybe i lack the imagination.Ignored
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